Home Sellers Cut Prices at Record Rate as Buyers Gain Leverage

Roughly 21% of U.S. home sellers lowered their asking prices during the four weeks ending September 20, marking the highest share recorded for that time of year in Redfin data, according to a new market analysis. The figure edged up from 19.8% during the same period a year earlier, signaling a continued shift in negotiating power toward buyers.

The trend reflects a broader cooling in residential real estate that has persisted as elevated mortgage rates constrain demand and force sellers to adjust expectations set during the pandemic-era price surge. Denver emerged as the metro area where price reductions are most prevalent, though the analysis notes the city's buyer-friendly conditions are less pronounced than in some other markets.

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The data underscores a widening divergence between seller expectations and what the market will bear. Homes that linger on the market tend to accumulate price cuts, a pattern that can accelerate if buyers sense further softening ahead. Analysts note that seasonal factors typically push price-cut rates higher in the fall as listing competition increases and demand from families seeking to move before a new school year fades.

For prospective buyers, the environment offers expanded room for negotiation not seen in several years. For sellers, the data serves as a clear signal that aggressive initial pricing carries increasing risk of extended time on market and eventual concessions.

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