Housing Market Sees Record Price Cuts in October
Buyers shopping for a home in October saw record-setting discounts, especially in some major markets. According to recent data from housing market platform Zillow, the typical U.S. home listing saw $25,000 in cumulative price cuts during October, marking the highest discount ever. The typical price cut remains at about $10,000, but as homes sit on the market longer, many listings are seeing more than one price cut before selling.
Which markets are seeing the biggest discounts?
The average cumulative listing may be $25,000, but in the most expensive housing markets, cumulative price cuts are much higher. In San Jose, for instance, cumulative price cuts amounted to $70,900 on average, and in Los Angeles, they amounted to $61,000. Other cities seeing major discounts include San Francisco and New York, which saw respective cumulative price cuts of $59,001 and $50,000.
Which markets are seeing the smallest price cuts?
While many metros across the U.S. are seeing sellers slash prices, sellers in some cities don’t need to budge on their list price as much. In Oklahoma City and Louisville, Ky., cumulative price cuts reached just $15,000. Additionally, price cuts in St. Louis amounted to just $15,100 on average.
Despite the discounts, home sales have been slow
- Pending-Home Sales Fall for First Time in 3 Months: During the four weeks ending Sept. 21, pending-home sales fell by about 1%.
- Sellers Continue to Outnumber Buyers in October: Home sales were weak in October, with sellers outnumbering buyers by nearly 37%.