U.S. Home Sellers Cut Prices in Stagnant Market

Home sellers across the country are facing a market with more listings than buyers. Many are cutting asking prices or offering money for repairs, closing costs, or lower mortgage rates. Some owners are removing their homes from the market, while others are waiting longer to sell before moving, changing jobs, buying a larger home, or carrying out other major plans.

Mortgage costs have climbed sharply. The average 30-year rate reached 7.4% this month after briefly falling below 6% in February, the highest point in nearly three years. The national median listing price fell 1.2% year over year in September to $419,250, its 11th straight monthly decline. About 21% of listings received an initial price cut that month, the highest share in four years.

Buyers now have more negotiating power, including the ability to seek seller-paid costs or help reducing their loan rate. Still, high prices and borrowing costs continue to keep many people from buying. Across the 50 largest U.S. metropolitan areas, sellers outnumbered buyers by about 63% last month. Roughly 929,000 buyers represented the smallest total recorded since 2013, while the number of sellers reached its highest level since 2020. The imbalance can leave families waiting to move, and it can affect renters and homeowners weighing whether a purchase or sale is possible. Sellers who remain on the market may need to accept lower prices, provide concessions, or wait until spring or summer.

The experiences described include a Texas homeowner who accepted $650,000 after listing at $750,000 and contributing $9,000 for repairs, and a Washington homeowner whose $825,000 listing drew no offers after a reduction to just under $800,000. Another seller cut $30,000 from a $480,000 price, but the only offer collapsed.