Home discounts hit 13-year high

Plus: Texas cities with the fastest-growing home prices

February 03, 2026

☕ Dearest gentle reader, it's Tuesday.

Today's newsletter is 631 words — a 2.5-minute read.

1. Home discounts hit 13-year high

According to a new Redfin report, the typical homebuyer who purchased a home below the list price in 2025 received a 7.9% discount, the largest since 2012.

Nearly two-thirds of all homebuyers closed on discounted purchases in 2025, the highest share since 2019.

By comparison, 22.8% of buyers paid more than the list price, the lowest share since 2019. Just under one in six (15.6%) paid the exact list price, a figure that has remained relatively steady over the years.

Source: Redfin

2. Trump taps Kevin Warsh to chair the Federal Reserve

President Trump announced Friday that he is nominating Kevin Warsh as the next Federal Reserve chair. Warsh will succeed Jerome Powell, whose term ends in May. The nomination requires Senate confirmation.

The move ends months of speculation over Powell’s successor. Warsh, who served as a Fed governor from 2006 to 2011, was also considered for the chairmanship in 2017, when Trump ultimately chose Powell.

“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” Trump wrote in the post. “On top of everything else, he is ‘central casting,’ and he will never let you down.”

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3. Catch up quick

⚠️ Zillow cuts 200 roles following performance reviews. (InterviewPal)

📉 Single-family rental is on the decline. (Redfin)

🏠 Tiny homes are big in Texas, and they’re selling ‘rapidly’. (Realtor.com)

🚀 Cities with the fastest-growing home prices in Texas. (Stacker)

🤖 AI agents now have their own social network. (Moltbook)

4. Keller Williams settles Batton commission lawsuit

Keller Williams has agreed to end its involvement in the Batton buyer-broker commission lawsuit, according to court documents filed Monday.

The firm agreed to pay $20 million to settle the suit, which alleges that the National Association of Realtors, Anywhere Real Estate (now Compass International Holdings), RE/MAX, and Keller Williams Realty participated in a “decades-long, nationwide antitrust conspiracy” that resulted in homebuyers paying “billions in overcharges.”

The company did not disclose additional terms of the settlement, but a spokesperson said the agreement does not include any new business practice changes.

5. Home prices rose to record highs in 2025

Last week, ATTOM released its Year-End 2025 U.S. Home Sales Report, showing that 3.9 million homes were sold last year, with a record-high national median sale price of $360,000. That figure was 2.6% higher than in 2024 and 39% higher than in 2020.

While prices reached new peaks in 2025, profit margins did not. The typical home generated $118,710 in gross profit, representing a 49% return on investment. That was down from a gross profit of $124,500 and a 55% return in 2024.

“Home prices kept climbing in 2025 even as affordability challenges intensified for households across the country. While sellers continued to command record prices, profit margins have been declining for three consecutive years since peaking in 2022, suggesting the market may be gradually normalizing after a period of strong returns.”

Rob Barber, CEO of ATTOM

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