One in Five Home Sellers Cut Prices as Buyer’s Market Persists
Redfin reported the highest share of homeowners cutting their asking price this time of year.
The brokerage reported that over one in five (21.1%) U.S. home sellers with active listings cut their asking price during the four weeks ending Sept. 20. Redfin said that’s the highest share for this time of year in its records, which date back to the start of 2022. It’s only slightly up from a year earlier, when 19.8% of sellers dropped their price.
Price drops are only becoming more common in the face of the strongest buyer’s market on record—a sign that many would-be sellers are waiting to put their home on the market and others are delisting if they don’t get their asking price. Additionally, some sellers have adjusted their expectations and are pricing realistically from the start.
“Those who sell their homes quickly are the ones who are getting savvier about pricing right from day one,” said Redfin Senior Economist Asad Khan. “Sellers who price too high may be working off outdated comps, or feel overly optimistic about the chance of sparking a bidding war, despite data that says it’s unlikely. Many are eventually cutting their price as they come to terms with reality: Mortgage rates are sitting above 7%, the economy is uncertain, and many homes are lingering on the market.”
Seasonal Data
The report is based on a Redfin analysis of MLS data. That data is seasonal, which is why Redfin said it compares the four weeks ending Sept. 20 to the same period in years past.
For sellers, a price cut isn’t a failure, Redfin noted.
The cut is a sign that the initial price was too ambitious—and homeowners thinking about listing now should remember that it’s typically better to get the number right the first time than to chase buyers with a lower price when the listing becomes stale, Redfin said.
For buyers, the price-drop rate flattening doesn’t mean they have less power, Redfin said.
The drop means that buyers’ power is showing up earlier, in asking prices themselves rather than markdowns after a listing goes live. Redfin said that homebuyers should still consider offering below asking price on homes that have been sitting on the market for more than a month.
It said that house hunters also should consider asking for concessions: Nearly half of U.S. homebuyers are getting concessions from sellers, including money toward repairs, closing costs, and/or mortgage-rate buydowns.
Denver Leads the Nation in Price Cuts
In Denver, Redfin said that roughly three in 10 (30.9%) home sellers cut their asking price during the four weeks ending Sept. 20, a bigger share than anywhere else in the country. Denver was followed closely by Indianapolis (29.9%).
Next were three Texas metros: San Antonio (26.8%), Dallas (26.6%) and Austin (26.1%).
Redfin noted that San Antonio, Dallas, and Austin are three of the strongest buyer’s markets in the nation, with more than twice as many sellers as buyers. Denver and Indianapolis are also buyer’s markets, but less strong.
“Today’s buyers have enough options that they can afford to be picky, so it’s critical for sellers to price correctly and attract buyers from the get-go,” said Chandra Gordon, a Redfin Premier agent in Seattle, where 24.3% of sellers are cutting prices, higher than the national average. “But I meet a lot of sellers whose instinct is to do the opposite. They’ll say, ‘let’s price higher so we have room to negotiate down.’ I understand the reasoning, but overpricing a home is a fast way to deter buyers. Pricing in line with the market from day one is the best way for sellers to meet buyers where they are, rather than watch their listing go stale.”
San Francisco Sellers Rarely Cut Prices
Redfin noted that just under 10% of San Francisco home sellers are dropping their asking price, the smallest share in the country.
San Francisco is one of just five seller’s markets in the nation; its hot market is fueled by AI wealth, with buyers competing for homes rather than sellers competing for buyers. It also should be noted that San Francisco typically has a fairly low share of sellers dropping their price due to local market dynamics, though it’s lower than usual for this time of year.
Newark, New Jersey is next, with 12.2% of home sellers dropping their asking prices. Redfin said that Newark is one of the country’s other five seller’s markets. Chicago (13.3%), New York (13.6%), and Miami (13.7%) round out the five metros with the smallest share of sellers cutting their asking prices.
