Home Sellers Are Cutting Prices at a Record Rate to Lure Skittish Buyers
The typical home that sold in August went for nearly 4% under its asking price–the steepest discount for that month since 2019.
One of every six (16.7%) U.S. home sellers dropped their asking price in August, up from 15.9% a year earlier and the highest share for that month in records dating back to 2012.
It’s the highest share for any time of year except the previous two months, when the portion of listings with a price cut hit 16.8% (June) and 17.4% (July). Note that the share of listings with price drops typically declines from June/July to August because that’s the seasonal pattern.
This is according to a Redfin analysis of MLS data. To determine the share of active listings in the U.S. and in the 50 most populous U.S. metro areas with price drops, we divide the number of listings with a price drop of more than 1% from the previous price in a given month by the total number of active listings in the same month.
Not only are a bigger share of for-sale homes seeing price drops, but the typical discount from the original list price is the biggest it has been since before the pandemic. The typical home that sold in August went for 3.8% less than its original asking price–the steepest discount for that month since 2019.
More sellers are cutting prices because high housing costs, economic uncertainty and rising inventory have made it a buyer’s market. While inventory has lost steam in recent months, it’s still outpacing demand. In August, home sellers outnumbered buyers by more than 500,000, the second-biggest gap in records dating back over a decade. That has led to price drops because when buyers have more options to choose from, they’re not willing to pay as much for a home.
Sellers are still catching up to the buyer’s market dynamic; many sellers are listing too high. When sellers realize their home is priced too high, they sometimes bring it down to attract a buyer and sometimes pull the home off the market.
“While some home sellers have come to terms with the realities of today’s housing market, many are still hoping to cash in on the pandemic-era housing market, when high demand was pushing many sale prices way over asking,” said Redfin Senior Economist Asad Khan. “Price drops can signal weakness to buyers and lead to further cuts, so home sellers should consult a local agent to set a realistic price from the beginning. It’s also wise for sellers to be patient, understand that it may take a few weeks or even a few months to offload their home in today’s slower-than-usual market, and be open to making concessions.”
Price Drops Are Most Common For Single-Family Homes
Single-family home listings are driving the price-drop trend.
Nearly one in five (18.3%) single-family-home listings had a price drop in August, compared with 12.8% of condo listings and 11.5% of townhome listings.
Sellers of single-family homes are more commonly dropping prices because condo sellers have had longer to catch up to the realities of today’s market. The condo market has been suffering for many years, partly because homebuyers in Florida and Texas backed away from condos amid surging insurance costs and HOA fees. Those who are selling condos are more likely to set realistic prices from the start. Additionally, price drops are historically more common for single-family homes than condos or townhouses, likely because single-family homes are more difficult to price, as they have more variables and are more likely to have been renovated to the owner’s taste.
Price Drops Becoming More Common in Nearly Every Major U.S. Metro
In Denver, nearly one-third (31.1%) of home sellers dropped their asking price in August, the highest share of the 50 most populous U.S. metros. It’s followed by Indianapolis (30.7%) and San Antonio (28.5%).
There are seven other metros where over one-quarter of sellers dropped their price, and most are in Texas and Florida: Austin, Dallas, Tampa, Houston, Jacksonville, Portland, OR and Fort Worth.
“Supply is stacking up and we’re seeing price drop after price drop,” said Crystal Zschirnt, a Redfin Premier agent in Dallas. “House hunters are still on the fence, hoping mortgage rates come down more before they buy. But the buyers who are jumping in now are the ones who are getting a good deal: A fair price, concessions from the seller, and maybe even help buying down their rate. The sellers who are willing to give concessions and sell for slightly less than they want are usually the ones who need to offload their home quickly; maybe they’re moving out of state or need a bigger home because they’re expanding their family. Buyers should consider looking at homes that have been on the market for several weeks; they may get a deal.”
The share of listings with a price drop rose in 38 of the 50 most populous metro areas. The biggest increases were in Washington, D.C., San Jose, CA and Indianapolis. The biggest declines were in San Antonio, Tampa, and West Palm Beach, FL.
Price drops were least common in major coastal metros. In Newark, NJ, 10.7% of sellers dropped their asking price, the smallest share in this analysis, followed by New York (11.7%) and San Francisco (12.2%).
| Metro-Level Summary: Price Drops, August 2025
50 most populous U.S. metro areas |
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| U.S. metro area | Share of active listings with price drops | Share of active listings with price drops, YoY change (in percentage points) | Average percent price drop |
| Anaheim, CA | 18.5% | 1.5 | 3.7% |
| Atlanta, GA | 24.9% | 1.1 | 3.7% |
| Austin, TX | 28.5% | -0.3 | 3.8% |
| Baltimore, MD | 21.9% | 2.6 | 4.4% |
| Boston, MA | 16.4% | 2.4 | 3.9% |
| Chicago, IL | 14.1% | 1.7 | 3.9% |
| Cincinnati, OH | 19.7% | 0.3 | 3.9% |
| Cleveland, OH | 20.7% | 1.8 | 5.3% |
| Columbus, OH | 21.9% | 2.3 | 3.4% |
| Dallas, TX | 28.2% | 1.3 | 3.4% |
| Denver, CO | 31.1% | 2.8 | 3.3% |
| Detroit, MI | 20.9% | 2.0 | 5.7% |
| Fort Lauderdale, FL | 18.5% | 0.0 | 4.5% |
| Fort Worth, TX | 26.8% | -0.1 | 3.3% |
| Houston, TX | 27.2% | 1.5 | 4.0% |
| Indianapolis, IN | 30.7% | 2.8 | 3.5% |
| Jacksonville, FL | 26.9% | -0.2 | 3.6% |
| Las Vegas, NV | 21.2% | 1.6 | 3.3% |
| Los Angeles, CA | 16.9% | 2.8 | 4.4% |
| Miami, FL | 15.3% | 0.3 | 4.4% |
| Milwaukee, WI | 13.9% | -0.7 | 4.3% |
| Minneapolis, MN | 21.9% | 0.1 | 3.4% |
| Montgomery County, PA | 16.9% | 1.7 | 3.8% |
| Nashville, TN | 20.4% | -0.3 | 3.4% |
| Nassau County, NY | 14.1% | 1.3 | 5.1% |
| New Brunswick, NJ | 14.6% | 1.6 | 4.4% |
| New York, NY | 11.7% | -0.3 | 5.1% |
| Newark, NJ | 10.7% | 0.0 | 5.0% |
| Oakland, CA | 18.6% | 1.8 | 4.6% |
| Orlando, FL | 24.6% | -0.3 | 3.6% |
| Philadelphia, PA | 20.5% | 0.2 | 4.8% |
| Phoenix, AZ | 22.5% | 1.5 | 3.2% |
| Pittsburgh, PA | 20.5% | -0.8 | 5.3% |
| Portland, OR | 26.8% | 0.9 | 3.7% |
| Providence, RI | 13.5% | -0.9 | 4.5% |
| Riverside, CA | 19.4% | 2.1 | 3.8% |
| Sacramento, CA | 23.5% | 0.8 | 3.6% |
| San Antonio, TX | 28.5% | -2.7 | 3.9% |
| San Diego, CA | 22.2% | 2.6 | 3.8% |
| San Francisco, CA | 12.2% | 1.4 | 5.8% |
| San Jose, CA | 17.4% | 4.3 | 5.0% |
| Seattle, WA | 22.8% | 2.6 | 3.5% |
| Tampa, FL | 27.9% | -1.2 | 3.7% |
| Virginia Beach, VA | 19.4% | 2.0 | 3.3% |
| Warren, MI | 21.7% | 0.8 | 4.1% |
| Washington, DC | 18.4% | 4.4 | 3.5% |
| West Palm Beach, FL | 17.8% | -1.0 | 4.6% |
| National | 16.7% | 0.8 | 4.1% |
The post Home Sellers Are Cutting Prices at a Record Rate to Lure Skittish Buyers appeared first on Redfin Real Estate News.
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