Sellers Are Cutting Prices in These Metros to Entice Buyers
In most parts of the U.S., homebuyers and sellers remain in a standoff, and that has caused price reductions to grow. In September, roughly one in five listings had a price reduction, according to Realtor.com’s most recent housing market trends report. Most commonly, price reductions were found in the middle price tier of the market, where homes are typically listed between $350,000 and $500,000.
Regionally, the South experienced the most price reductions in September, with 21.1% of listings with price cuts. The South was followed by the West and then the Midwest, each of which recorded 20.9% and 19.2% of listings with price cuts, respectively.
Which cities are seeing the most price reductions?
With the largest share of price reductions recorded in the South and West, it’s no surprise that the cities with the highest share of price reductions were found in these regions. Portland, Ore., saw the most price reductions in September, followed by Denver, and Austin.
In Portland, many of the reduced homes were priced between $500,000 and $750,000. Out of all the for-sale homes in this price range, just over 32% had price reductions.
Due to a recent surge in inventory, home sellers in Denver have had to cut prices in order to maintain a competitive advantage. This growth in inventory has placed Denver second in price cuts for homes listed between $200,000 and $750,000, but first for homes priced between $750,000 and $2 million.
In Austin, about 32% of listings priced between $500,000 and $750,000 and roughly 30% in the $350,000 to $500,000 range saw price reductions.
Home price reductions have become more common since the beginning of the year
- Stale Home Listings Cause Price Cuts to Soar: In May, 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.
- 2025 Could See More Home Price Reductions: In February, it was predicted that a surge in inventory would cause home-price reductions to increase throughout the remainder of the year.