Sellers Trim Prices as Inventory Gives Buyers More Leverage
The latest Realtor.com September Monthly Housing Trends report shows a growing trend of sellers adjusting asking prices to appeal to buyers, with nearly one in five homes seeing a reduction in September. The shift reflects increased leverage for buyers as housing inventory rises, giving them more options and negotiating power.
Price reductions are most common in lower- and mid-tier segments, while luxury homes remain relatively stable, demonstrating that sellers at the top of the market are more patient and selective. Realtor.com’s analysis found that only 13.3% of homes priced over $1 million were reduced in September, compared with 21.6% of properties priced between $350,000 and $500,000.
“September’s trends show a housing market increasingly tilting in buyers’ favor, with a rising inventory of homes for sale, longer days on market, and more competitive pricing,” said Danielle Hale, Chief Economist at Realtor.com. “Additionally, seasonal trends suggest the week of October 12–18 may provide a particularly strong window for buyers. While market conditions vary across regions and price tiers, momentum is aligning with seasonal price cuts and other buyer advantages, making this fall one of the more favorable periods for purchasing in recent years.”
Price Adjustments by Tier
| List Price Tier | Share of Listings | Share with a Price Cut |
|---|---|---|
| Under $350k | 39.8% | 20.8% |
| $350k–$500k | 22.2% | 21.6% |
| $500k–$750k | 18.3% | 21.1% |
| $750k–$1M | 8.1% | 18.3% |
| Over $1M | 11.5% | 13.3% |
| Overall | — | 19.9% |
While overall price reductions held steady from August, they were up 1.2 percentage points from September 2024. Most adjustments occurred in mid-range homes, which continue to see higher competition from first-time buyers and those looking to downsize, while the luxury segment benefits from lower turnover and high buyer patience.
Regional Differences
Price reduction patterns also varied across the country:
- Northeast: 14.0% of listings saw cuts, the lowest in the nation.
- Midwest: 19.2% of listings had price reductions.
- West: 20.9% of listings lowered their prices.
- South: 21.1% of listings were reduced.
Some metro areas with slower demand saw significantly higher cuts. For instance, Portland, Oregon led with 30.2%, followed closely by Denver at 30.7% and Indianapolis at 29.7%. These numbers highlight that sellers in slower-moving markets are more willing to adjust prices to attract buyers.
Inventory Growth Adds Pressure
Active housing inventory continued to expand in September, increasing 17.0% year-over-year and keeping the total above 1 million homes for the fifth consecutive month. This marked the 23rd consecutive month of year-over-year inventory growth, providing buyers with more choices and strengthening their bargaining position.
However, inventory growth has slowed since the summer peak, declining from 31.5% in May to 28.9% in June, 24.8% in July, and 20.9% in August. Despite these gains, national inventory remains 13.9% below the 2017–2019 average, indicating that while the market has improved, the housing supply rebound has plateaued.
“Even as inventory improves, the overall supply remains tight relative to historical norms, particularly in high-demand metros,” Hale noted. “Buyers have more negotiating power, but sellers in constrained markets continue to maintain pricing discipline. This dynamic will likely continue to shape the market through the fall and into the winter.”
Takeaways for Buyers and Sellers
- For Buyers: September provided more opportunities to negotiate, particularly for mid-tier homes. Seasonal trends suggest early to mid-October could offer further advantages.
- For Sellers: While price reductions are necessary in lower and mid-tier segments to attract buyers, luxury home sellers remain patient, relying on market scarcity and exclusivity.
- For the Market: The combination of increased inventory, modest price reductions, and seasonal buying patterns points to a gradual shift toward a buyer-favored environment, though supply constraints still temper the impact.
The Realtor.com report underscores the evolving balance of power in the housing market, showing that buyers now have a stronger voice, particularly in lower-priced segments, while sellers must carefully navigate pricing strategies to remain competitive. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
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