Home price reduction levels climbed to record territory last month as more homes stayed on the market longer, leading sellers to adjust their asking prices more often.
According to Zillow, an analysis of nationwide listings from October found that the median cumulative price reduction applied to a typical home from listing to sale was $25,000. This matches the largest discount on record, first seen in the summer of 2022.
Individual price cuts have hovered around $10,000 in recent years. However, as listings remain on the market longer, more properties are seeing two or more price reductions, which is viewed as the main reason for the rise in cumulative cuts.
Even so, most sellers have enjoyed significant gains in home values over the past few years. As a result, many can lower prices once or twice and still sell without losses, often locking in sizable profits.
Zillow said this pattern is increasing the number of transactions that involve price adjustments and helping the broader market move back toward balance.
Experts described this fall’s market as the most active since the pandemic. They added that, despite the burden of high mortgage rates, buying conditions have improved to their best level in three years, and the market is gradually moving away from the overheated conditions of the pandemic era toward a more normal phase.
As sellers adjust their initial price expectations, buyers are gaining more time and flexibility to compare and review available listings.
Discounts have been largest in major metropolitan areas. San Jose posted the biggest reduction, with listing prices cut by $70,900. Los Angeles followed at $61,000, while San Francisco recorded $59,001 in reductions. In New York and San Diego, typical cuts were $50,000.
These cities tend to have relatively high listing prices, which also increases the dollar size of the discounts.
By contrast, mid-priced regions saw some of the largest percentage reductions. In Pittsburgh, Pennsylvania, the average cut was about $20,000, equal to roughly 9% of the area’s median home value and among the highest shares in the country. New Orleans also recorded reductions of about 9%, while Austin, Houston, and San Antonio in Texas saw discounts in the 7–8% range. In these markets, buyers feel price adjustments more sharply.
Several cities reported the smallest price cuts. Oklahoma City, Louisville, St. Louis, Indianapolis, and Detroit all saw reductions in the $15,000 to $17,000 range. These markets share faster-than-average listing turnover and a higher share of new listings, which means sellers face less pressure to make large price reductions.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
