Homebuyers

Hoping for a Deal? These Housing Markets Have the Highest Percentage of Price Cuts

After years of high and rising home prices, homebuyers are finally regaining some leverage. In larger housing markets, home sellers are lowering asking prices as the year comes to a close. This is giving buyers more power than they have had in years.

Price cuts on homes are becoming more common, according to a recent Realtor.com report. That’s especially true in markets that heated up quickly during the pandemic and are now adjusting to cooler demand.

The reason for the price reductions comes down to basic supply and demand economics. Homes are staying on the market longer than last year as housing stock increases and mortgage rates remain above 6%. That’s forcing many home sellers to adjust their expectations.

“Buyers are sensitive to anything that feels overpriced,” said Brett Johnson, a Denver-based real estate agent and owner of New Era Home Buyers.

Price cuts are particularly common in Indianapolis, Phoenix, and Columbus, Ohio. These are the top three markets with the highest share of price cuts in November.

“Each of these metros has been moving in a more buyer-friendly direction this year,” said Jake Krimmel, senior economist at Realtor.com. With demand softer as the year winds down, he added that buyers shopping in the winter off-season may be able to “find a deal.”

Indeed, 10 of the 20 metros on the list have median asking prices below Realtor.com’s national median list price of $415,000 in November. This underscores that price cuts are not limited to higher-cost markets.

Price cuts can provide big savings for buyers. For example, a $50,000 price reduction on a $400,000 home could lower the monthly payment by about $300 on a 30-year mortgage at 6.3%. That’s equal to roughly $3,600 in savings per year before taxes and insurance.

Below are the metropolitan areas with the highest percentage of homes with price cuts in November, according to Realtor.com data. (Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)

The 20 housing markets with the largest percentage of price cuts

1. Indianapolis
   Median list price: $315,000
   Share of listings with price cuts: 28.7%
2. Phoenix
   Median list price: $489,000
   Share of listings with price cuts: 28.2%
3. Columbus, Ohio
   Median list price: $359,900
   Share of listings with price cuts: 27.4%
4. Salt Lake City
   Median list price: $575,000
   Share of listings with price cuts: 26.8%
5. Colorado Springs, Colo.
   Median list price: $484,000
   Share of listings with price cuts: 26.2%
6. Worcester, Mass.
   Median list price: $525,000
   Share of listings with price cuts: 25.9%
7. Denver
   Median list price: $579,000
   Share of listings with price cuts: 25.6%
8. Dayton, Ohio
   Median list price: $249,900
   Share of listings with price cuts: 25.5%
9. Portland, Ore.
   Median list price: $589,000
   Share of listings with price cuts: 25.0%
10. Austin, Texas
    Median list price: $479,000
    Share of listings with price cuts: 24.9%
11. San Antonio, Texas
    Median list price: $324,900
    Share of listings with price cuts: 24.7%
12. Dallas
    Median list price: $420,000
    Share of listings with price cuts: 24.4%
13. Greenville, S.C.
    Median list price: $378,000
    Share of listings with price cuts: 24.4%
14. Tampa, Fla.
    Median list price: $400,000
    Share of listings with price cuts: 24.2%
15. Knoxville, Tenn.
    Median list price: $448,900
    Share of listings with price cuts: 24.2%
16. Jacksonville, Fla.
    Median list price: $389,000
    Share of listings with price cuts: 23.8%
17. Palm Bay, Fla.
    Median list price: $374,500
    Share of listings with price cuts: 23.5%
18. Tulsa, Okla.
    Median list price: $324,900
    Share of listings with price cuts: 23.5%
19. Charleston, S.C.
    Median list price: $494,000
    Share of listings with price cuts: 23.4%
20. Memphis, Tenn.
    Median list price: $319,000
    Share of listings with price cuts: 23.2%