More than one in five US home sellers have reduced their asking prices as the housing market shows signs of a significant cooldown from pandemic peaks. According to the Wall Street Journal, just over 20% of active listings in October had a price cut, double the rate seen during the Covid-19 pandemic.
Higher mortgage rates, currently around 6%, are deterring buyers who now face much larger monthly payments compared to the pandemic era when rates were near 3%. Many sellers are still pricing homes based on the red-hot market of 2020-2021, when properties often sold within days and above asking price.
Data from the National Association of Realtors (NAR) shows that homes priced correctly from the start sell faster and achieve close to 100% of their asking price. In contrast, listings that undergo a price cut typically spend five times longer on the market. Once a home has been listed for three months, sellers generally begin reducing the price.
Nationally, home prices are still rising—up 2.3% year-over-year in 2025—but the buyer's market is strengthening. Redfin reports that 57% of homes sold through October 2025 had at least one price cut, compared to 47% between 2020 and 2024. The average price cut is about 3.7% below the original asking price.
First-time buyers are particularly affected, making up only 34% of buyers in October—well below the typical 40%—and a record low 21% over the past year. Housing inventory has swelled, with every state reporting an increase in active listings compared to 2024. States with the largest inventory increases include Maryland (34%), Virginia (27%), North Carolina (34%), Nevada (27%), and Arizona (23%).
