Stale Home Listings Cause Price Cuts to Soar

In May, the share of homes receiving price cuts grew to levels not seen for the month since 2016.
June 5, 2025
2 min read

As homes sit on the market for longer periods of time, the number of properties receiving price cuts has grown. In May, price reductions on listed properties grew to levels not seen for the month since 2016, according to Realtor.com’s May 2025 Inventory Report. Price cuts were reported on 19.1% of all for-sale homes, with cuts twice as common in the South and West as in the Northeast. Comparatively, in May 2024, the share of listings with price reductions was below 17%.

 

Price reductions have become more common in each of the past five months, a trend suggesting that sellers are adjusting their expectations in the face of affordability challenges and weaker buyer demand in some markets.

- Realtor.com chief economist Danielle Hale

Metros with the most price cuts

Across the U.S., the South and West saw the most listings with reduced prices. Each region saw 21% of all home listings receive price cuts in May, compared with just 11% of listings in the Northeast. 

Of all the major metro areas, Phoenix recorded the largest share of price reductions. There, 31.3% of home listings saw price cuts in May. Tampa, Fla., and Denver followed, where a respective 30% and 29.4% of listings received price cuts during May. 

According to the report, this upward trend is likely due to softening demand in these markets following years of inventory growth following the pandemic housing boom. 

Home-price reductions have been growing over the past year

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