'Sellers Are Certainly Flexible On Price': Homes Reduced By 25% Or More In These 10 Hot Markets

The cooling U.S. housing market is welcome news for homebuyers, as price reductions are becoming increasingly common across major metro areas.

Data from Realtor.com’s September Housing Market Trends Report shows an uptick in seller concessions, particularly in tech hubs and coastal markets.

According to the report, San Jose leads the price-cutting trend, with 28.2% of listings seeing reductions despite maintaining the highest median list price among major metros at $1.43 million. Close behind is Riverside, California, where 28.1% of homes have dropped their asking prices, followed by San Francisco at 27.4%.

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The shift comes as the Federal Reserve’s September interest rate reduction pushed mortgage rates to 6.2% mid-month, their lowest point since September last year. The current rate environment and a 34% year-over-year increase in available homes have created more favorable conditions for buyers.

“Home price reductions signal to homebuyers that homes are not moving as quickly as sellers anticipated,” said Realtor.com senior economist Ralph McLaughlin. The national median home price dropped from $429,990 in August to $425,000 in September.

The market’s rebalancing is evident in cities like Minneapolis, where 26.4% of listings have seen price cuts and Miami, where 26.2% of homes are now offered at reduced prices. Washington D.C., Virginia Beach and Denver round out the top markets, with over 25% of listings showing price reductions.

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Nuanced regional data found the Northeast leading in price adjustment frequency, with a 1.4% increase in reductions compared to last year. The West and Midwest followed closely, while the South showed minimal change.

Providence, Rhode Island, was the standout market for increased price reductions, with an 8.9% jump year-over-year. Portland, Oregon and Tampa, Florida, also saw increases in price cuts, at 5.6% and 5.5%, respectively.

The surge in inventory – with new listings up 11.9% year-over-year – has forced sellers to compete more aggressively. McLaughlin noted that sellers are showing flexibility in other areas beyond pure price reductions.

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"While [price reduction] indicates that sellers are certainly flexible on price, it also means they could be flexible on other aspects of a home sale, such as offering up concessions like closing costs, point buy-down, seller credits for repairs and upgrades and rent-backs if buyers aren't quite ready to move in," McLaughlin said.

The opportunities are abundant for buyers eyeing specific markets. In Phoenix, where 25% of listings have seen price cuts, a four-bedroom home recently dropped $12,000 to $382,000. According to the Realtor report, Austin’s market, showing similar reduction rates, recently saw a three-bedroom home reduced by $25,000 to $575,000.

The data signals a clear market adjustment, with sellers increasingly willing to negotiate as inventory levels rise and buyers gain more options. The trend spans across price points, from San Francisco’s $775,000 one-bedroom condos to Riverside’s $935,000 four-bedroom homes, both recently reduced by over $20,000.

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