Nearly one in five American homes listed for sale reportedly saw a price cut in September, as rising inventory shifted more power to buyers.
The number of listings with price cuts reached 19.9%, unchanged from August but up modestly from last year. Homes priced between $350,000 and $500,000 saw the steepest markdowns at 21.6%, while luxury properties over $1 million were less likely to see reductions, at just 13.3%, according to a Thursday report from Realtor.com.
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"What we’ve uncovered is that price reductions are more common at the lower end of the market, while higher-priced sellers are more likely to hold firm," Jake Krimmel, senior economist at Realtor.com, told FOX Business. "That helps explain why median prices nationally and in many [metropolitan areas] look steady even as buyers at more affordable price points are seeing more room to negotiate."
High-end sellers often have greater financial flexibility, equity or are listing second homes — giving them the option to wait rather than slash prices. Meanwhile, entry- and mid-tier sellers typically need to sell in order to buy — making them quicker to adjust, Krimmel noted.
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"With the market finding more balance this year, price reductions have become one of the clearest signals of change and of movement in a more buyer-friendly direction," Krimmel told FOX Business. "In 2025, more listings have seen price cuts than in any year since the pandemic, and certainly since mortgage rates surged in 2022 and demand cratered."
Price trends also diverged across regions last month. Just 14% of listings in the Northeast cut prices, compared with around 21% in both the South and West. Among major metros, Denver led the pack with 30.7% of homes reduced in price, followed by Portland at 30.2% and Indianapolis at 29.7%, according to the report.
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Active inventory jumped 17% year-over-year in September, keeping the number of homes on the market above 1 million for the fifth straight month. However, supply still remained nearly 14% below pre-pandemic levels, according to Realtor.com.
Homes are also taking more time to sell. Last month, the median time on the market rose to 62 days which is a week longer than last year. The median list price held steady at $425,000, flat from a year ago but still around 36% higher than in 2019, as noted in the report.
"This summer's housing market has been marked by regional divergence, with the South and West softening while the Northeast and Midwest stayed resilient," Krimmel added. "However, price cuts stand out as one of the few trends uniting markets nationwide. Rising inventory, longer time on market, and affordability pressures are pushing sellers everywhere to reset expectations and begin to price accordingly."
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Mortgage buyer Freddie Mac reported on Sept. 25 the average rate on the benchmark 30-year fixed mortgage rose to 6.3% from the prior week's reading of 6.26%. The average rate on a 30-year loan was 6.08% a year ago.
