Home Price Cuts Hit Yearly High as Inventory Approaches Pre-Pandemic Levels
Sellers are slashing prices at the fastest pace this year as rising mortgage rates sideline buyers and housing supply nears pre-pandemic norms.
Price reductions in the U.S. housing market climbed to their highest point of the year in September, according to Realtor.com's monthly housing report, as elevated mortgage rates continued to erode buyer demand and give remaining shoppers greater negotiating power.
Sellers are increasingly choosing to stay on the market and cut asking prices rather than withdraw their listings, a shift that is pushing active inventory closer to levels last seen before the pandemic disrupted supply and demand dynamics beginning in 2020.
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The confluence of softer buyer activity and swelling supply marks a notable turn in market conditions. Fewer purchase contracts are being signed, suggesting that even reduced prices have not been enough to fully offset affordability pressures driven by persistently high borrowing costs.
The September data signals that the fall season, historically a transitional period for real estate, is carrying an unusually buyer-friendly tone in 2026. Analysts tracking the sector have noted that inventory recovery at this pace could continue to moderate price growth nationally if mortgage rates do not ease in the near term.
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