Key facts
- For the week ending Aug. 7, 41.44% of active single-family listings nationally had taken a price cut.
- This national figure is 0.41 percentage points below the same week last year.
- Kansas City's active inventory is up 21.2% year-over-year, but its price-cut share is down 7.45 percentage points.
- Minneapolis has seen its price-cut share increase by 2.64 percentage points year-over-year, with inventory up 22.3%.
- San Antonio's price-cut share is up 6.37 percentage points year-over-year, with inventory essentially flat.
The national share of homes with price cuts is nearing levels seen a year ago, with 41.44% of active single-family listings taking a reduction in the week ending Aug. 7, a slight decrease from 41.85% a year prior. This narrowing gap suggests potential pricing pressure on sellers.
However, a closer examination of local markets reveals a more complex picture. In Kansas City, active inventory has increased by 21.2% year-over-year, yet the percentage of listings with price cuts has fallen by 7.45 percentage points to 35.12%, indicating that rising supply does not automatically translate to more aggressive price reductions.
Minneapolis presents a different scenario, with a 22.3% year-over-year increase in inventory and a 2.64 percentage point rise in price cuts to 37.69%. Despite more price reductions, transaction activity, including new pending and absorbed listings, has also seen significant growth.
San Antonio shows broader pricing pressure, with 50.68% of active listings taking a price cut, a 6.37 percentage point increase from last year. Inventory levels remained largely flat, but new pending activity declined while absorbed listings increased, presenting a mixed signal.
These divergent local trends underscore that the national price-cut rate alone is insufficient to determine market health. Housing professionals must consider a combination of local pricing, inventory, and demand signals to make informed decisions.