Housing Market Trends: Why More Sellers Are Slashing Home Prices

Sellers slash prices as buyers gain power

In September 2025, nearly one in five U.S. homes listed for sale saw a price reduction. That figure—19.9 percent—remained stable from August and marked more homes with cuts than in any recent year. Homes priced between $350,000 and $500,000 experienced the steepest markdowns (21.6 percent), while luxury homes over $1 million were less likely to adjust (13.3 percent).

Why is this happening now? A few market forces are tilting power toward buyers:

• Rising inventory. The number of active listings jumped 17 percent year-over-year, though supply is still below pre-pandemic levels.
• Longer time on market. Homes now sit for a median of 62 days—a week longer than last year.
• Affordability pressure. With mortgage rates around 6.3 percent, many buyers are more price sensitive.
• Regional variation. Price cuts are more common in the South and West (about 21 percent) than in the Northeast (around 14 percent).

In short, sellers—especially in middle price ranges—are resetting expectations. Buyers now have more leverage to negotiate.

What This Means for Sellers

If you’re planning to sell now or soon, it’s wise to rethink your pricing strategy and expectations. Here are key considerations:

1. Set Realistic Expectations from Day One

Don’t price too high hoping for a bidding war. Buyers have options. Price your home competitively to attract interest and avoid long days on market.

2. Highlight Upgrades and Differentiators

With more inventory competing for buyers’ attention, features like new appliances, energy efficiency, smart home tech, or refreshed landscaping can make your listing stand out.

3. Be Open to Negotiation

Expect requests for concessions—repairs, closing costs, or flexible timelines. Be prepared to counter but know your bottom line.

4. Time Your Listing Strategically

List when buyer traffic is strong (often spring or early summer) rather than during slower periods. Monitor your local seasonal trends and act when demand is higher.

5. Consider Incentives

Offering perks—like paying for inspections, landscaping, or a home warranty—can differentiate your home and reduce buyer friction.

What This Means for Buyers

For buyers, this shift is an opportunity. Here’s how to take advantage:

A. Scope the New Landscape

Track local listings, watch for price drops, and don’t shy away from homes that have lingered. Sellers with longer days on market may be more motivated.

B. Get Preapproved and Ready

Have your financing lined up. A seller is more likely to engage when they know you’re a serious buyer.

C. Use Price Cuts as Leverage

Ask for updates, repairs, or credits—not just a lower price. If they reduced once, they may reduce again or sweeten the deal.

D. Be Patient and Agile

If a listing isn’t right, move on. But when something promising drops, act fast. Buyers now gain the upper hand in certain segments.

E. Consult Local Market Data

Some regions remain stronger than others. In some cities, nearly 30 percent of homes saw reductions. If your market is cooling faster, your strategy should adjust.

Regions to Watch

• West and South: Price cuts are more common (around 21 percent). Buyers may find better deals.
• Midwest and Northeast: More resilient, with fewer reductions (around 14 percent in the Northeast).
• Luxury vs Mid-Tier: Mid-tier homes are more likely to discount. Luxury sellers often hold firm due to greater financial flexibility.

As a buyer or seller, knowing how your local market behaves gives you an edge.

How to Spot a Genuine Opportunity (or Red Flag)

When considering listings with price cuts, evaluate carefully:

• Why was the cut made? Did a home sit too long? Is there a defect the seller couldn’t fix?
• Track the history. Repeated price cuts could signal deeper issues.
• Inspect thoroughly. A lower price may hide deferred maintenance.
• Check comparable sales. Make sure the reduced price still fits the neighborhood’s range.
• Don’t rush based on emotion. Even eager sellers want value.

Preparing for the Future

Whether you plan to buy or sell, the shifting real estate market signals a more balanced environment. Here’s how to be ready:

• For Sellers: Renovate only what yields return. Stage the home. Work with an agent who understands current buyer expectations.
• For Buyers: Build patience. Keep a shortlist. Be flexible on timing and terms.
• For Realtors and Investors: Adapt marketing to emphasize value, move-in readiness, and flexibility.

Conclusion

The 2025 housing market is hitting a pivot point. Buyers are gaining ground. Sellers can no longer assume homes will fly off the market at inflated asking prices. But this shift brings opportunity—for those who prepare, price wisely, and act strategically.

If you’re selling, start with a realistic price, highlight value, and be ready to negotiate. If you’re buying, sharpen your eyes for undervalued homes, get your finances squared, and move confidently. In a changing market, success favors those who combine preparation with timing.

The balance is tilting. Will you make the most of it?