Home Price Cuts Hit Yearly High as Inventory Recovers
Rising mortgage rates are forcing more sellers to slash prices while buyer activity slows, per Realtor.com's September housing report.
Higher mortgage rates are driving a notable shift in the U.S. housing market this fall, with price reductions reaching their highest point of the year and available inventory approaching pre-pandemic norms, according to Realtor.com's September 2026 Housing Report released Monday.
Sellers are increasingly opting to hold their listings rather than withdraw them from the market, a trend that is gradually expanding the pool of homes available to buyers. That growing supply, combined with softer demand, is tilting negotiating power toward purchasers who remain active despite elevated borrowing costs.
Read more Fed Governor Cook Addresses Dual Mandate in Rural America →
The confluence of rising inventory and widespread price cuts marks a meaningful departure from the supply-starved conditions that defined the pandemic-era market. Analysts note that buyers willing to engage now may find more room to negotiate on price and terms than at any point in recent years, even as affordability remains a persistent challenge given current rate levels.
The report signals that the market is undergoing a gradual rebalancing rather than a sharp correction. Sellers who priced aggressively during tighter conditions are now recalibrating expectations to attract hesitant buyers, and the sustained presence of listings suggests confidence — however cautious — that deals can still be struck.
Continue reading at Economic News, Trends, Analysis.
