{"id":863165,"date":"2025-06-24T09:57:11","date_gmt":"2025-06-24T13:57:11","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-6-of-todays-home-sellers-are-at-risk-of-selling-at-a-loss\/"},"modified":"2025-06-24T09:57:11","modified_gmt":"2025-06-24T13:57:11","slug":"redfin-reports-6-of-todays-home-sellers-are-at-risk-of-selling-at-a-loss","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-6-of-todays-home-sellers-are-at-risk-of-selling-at-a-loss\/","title":{"rendered":"Redfin Reports 6% of Today\u2019s Home Sellers Are at Risk of Selling at a Loss"},"content":{"rendered":"

<\/p>\n

Redfin Reports 6% of Today\u2019s Home Sellers Are at Risk of Selling at a Loss<\/b><\/p>\n

This is up from 4.4% a year ago, but still historically low. The risk of selling at a loss varies significantly in different parts of the country; nearly 20% of sellers are at risk of losing money <\/i>in San Francisco, compared to virtually 0% of sellers in Providence, RI.<\/i><\/p>\n

SEATTLE–(BUSINESS WIRE<\/a>)–
\n(NASDAQ: RDFN) \u2014 Nearly 6% of today\u2019s U.S. home sellers are at risk of selling for less than their purchase price\u2014up from 4.4% a year ago, but still well below pre-pandemic levels\u2014according to a new report<\/a> from Redfin (www.redfin.com<\/a>), the technology-powered real estate brokerage.<\/p>\n

\nThe story is different in different parts of the country. Virtually zero sellers in Providence, RI, for instance, are at risk of selling their home at a loss. But in San Francisco, nearly 20% of sellers are at risk. The story also differs by home type; condos are much more likely to be at risk of selling at a loss than single-family homes or townhouses.<\/p>\n

\nThis is according to a Redfin analysis of active listings on the MLS in May, in which Redfin predicts how much a home is likely to sell for based on the sale-to-list price ratio of the metro area where it is located.<\/p>\n

\nNote that Redfin\u2019s analysis identifies the share of sellers at risk<\/i> of selling at a loss if they go through with a sale in today\u2019s market. It does not predict the share of sellers who will actually<\/i> sell their home at a loss. Many would-be sellers facing a financial loss will simply wait until they find a buyer willing to pay the asking price, while others may take their home off the market and continue to live in it, or rent it out.<\/p>\n

The share of sellers at risk of losing money is historically low<\/b><\/p>\n

\nIn the early 2010s, following the global financial crisis, roughly half of for-sale homes were at risk of selling at a loss. Even prior to the pandemic, in early 2020, around 10% of for-sale homes were at risk of selling for less than their purchase price.<\/p>\n

\nRedfin Senior Economist Asad Khan<\/a> said the relatively small share of sellers facing a loss today is good news for buyers.<\/p>\n

\n\u201cWe are seeing more opportunities for buyers to pay a little less than they would have just a year or two ago. That\u2019s because sellers with significant equity in their homes\u2014and therefore at no risk of selling at a loss\u2014are more willing to be flexible on price,\u201d he said. \u201cThat\u2019s a meaningful shift for anyone who\u2019s been watching and waiting for prices to come down, especially first-time homebuyers.\u201d<\/p>\n

1 in 6 home sellers who bought after the pandemic are at risk of losing money<\/b><\/p>\n

\nZooming in on recent homebuyers, nearly one in six (16.4%) of today\u2019s sellers who bought their home post-pandemic are at risk of selling for less than their purchase price.<\/p>\n

\nFor comparison, 9% of today\u2019s sellers who bought their home during <\/i>the pandemic are at risk of selling at a loss, and just 1.8% of sellers who bought before <\/i>the pandemic are at risk.<\/p>\n

\n\u201cThe longer someone has owned their home, the more likely they are to come out ahead, but that\u2019s little comfort for those who bought more recently and may be facing a loss,\u201d said Khan. \u201cNot every homeowner is listing because they want to\u2014some are listing because they have to. In those cases, it\u2019s important to list at a realistic price for the market and be prepared to adjust depending on buyer interest.\u201d<\/p>\n

\nSellers who bought their home after the pandemic make up a sizable share of today\u2019s sellers: 16.3% of the U.S. home listings currently on the market were purchased after July 2022.<\/p>\n\n\n\n\n
\n

Share of active listings based on when they were last purchased<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Purchased Post-Pandemic (after July 2022)<\/b><\/p>\n<\/td>\n

\n

Purchased During Pandemic (July 2020-July 2022)<\/b><\/p>\n<\/td>\n

\n

Purchased Pre-Pandemic (before July 2020)<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nMay 2025<\/p>\n<\/td>\n

\n

\n16.3%<\/p>\n<\/td>\n

\n

\n20.6%<\/p>\n<\/td>\n

\n

\n63.1%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\nHomes that were purchased after the pandemic are more likely to sell at a loss\u2014if they were to sell now\u2014for two main reasons:<\/p>\n