Risk of Selling at a Loss: A Growing Concern for US Home Sellers

Strategic Insights -

As the US real estate market continues to evolve, a significant number of home sellers are facing the risk of selling their properties at a loss. According to a new report from Redfin, nearly 6% of current US home sellers are at risk of selling for less than their purchase price, up from 4.4% a year ago. This trend is particularly pronounced in certain regions, with nearly 20% of sellers in San Francisco facing the risk of a loss, compared to virtually zero in Providence, RI.

Key Takeaways:

  • The share of US home sellers at risk of selling at a loss has increased to 5.7%, up from 4.4% a year ago.
  • Regionally, San Francisco has the highest share of sellers at risk of a loss, with nearly 20% facing the risk.
  • Condos are significantly more likely to sell at a loss than single-family homes or townhouses, with 28.7% of for-sale condos bought after the pandemic surge at risk of selling at a loss.
  • If prices fall by 1%, the overall share of homes at risk of selling at a loss will increase to 6.4%, while if prices drop by 5%, the share will increase to 10.1%.
  • Sellers who bought their home after the pandemic are more likely to be at risk of selling at a loss, with 16.4% of today's sellers in this category at risk.
  • Nearly one in six (16.4%) of today's sellers who bought their home post-pandemic are at risk of selling for less than their purchase price.

Statistics:

  • 5.7% of current US home sellers are at risk of selling for less than their purchase price.
  • 6% of for-sale condos bought after the pandemic surge are at risk of selling at a loss.
  • If prices fall by 1%, 6.4% of homes will be at risk of selling at a loss.
  • If prices drop by 5%, 10.1% of homes will be at risk of selling at a loss.

Sources:

  • Redfin (2025) - "Selling at a Loss: 2025"
  • Redfin News - "Selling at a Loss: 2025" (https://www.redfin.com/news/selling-at-a-loss-2025)
  • BusinessWire - "Redfin's Predictions for US Home Prices in 2025" (https://www.businesswire.com/news/home/20250624558671/en/)
  • Redfin Data Center - "US Home Sales Data"