Key facts
- About 21% of active home listings had a price cut in the four weeks ending Sept. 20.
- This is the highest proportion of sellers cutting prices at this time of year since at least 2022.
- The average 30-year fixed mortgage rate surpassed 7% in September and neared 7.5% on Monday.
- Denver, CO has the highest share of active listings with a price drop at 30.9%.
Home prices are declining in several major US metropolitan areas as inventory increases and mortgage rates remain elevated. Around 21% of sellers with active listings reduced their asking price in the four weeks leading up to September 20, according to Redfin. This marks the highest proportion of price cuts for this period since at least 2022, when the real estate listings site began tracking the data.
The housing market has experienced a slowdown following the pandemic-era buying frenzy, with conditions worsening in recent months due to rising borrowing costs. The average 30-year fixed mortgage rate exceeded 7% in September for the first time in years and was close to 7.5% on Monday, reflecting increased costs for consumers amid higher bond yields.
"Many are eventually cutting their price as they come to terms with reality: Mortgage rates are sitting above 7%, the economy is uncertain, and many homes are lingering on the market," said Asad Khan, a senior economist at Redfin.
The 12 cities seeing the most homes with price cuts include Denver, CO (30.9% of active listings), Indianapolis, IN (29.9%), San Antonio, TX (26.8%), and Dallas, TX (26.1%).