In the four weeks ending September 20, 2026, the share of U.S. home sellers cutting asking prices reached 21.1%, the highest level for that time of year since tracking began in 2022.
The Real Estate Pivot Point
- Price Reductions Hit Seasonal Highs: Nationally, 21.1% of active listings underwent price cuts by late September, up from 19.8% during the same period in the previous year.
- Financing Headwinds: Freddie Mac reported the average 30-year fixed mortgage rate climbed to 7.28% as of October 1, the highest level since November 2023.
- Cash Advantage: Academic research indicates all-cash buyers pay approximately 10% less on average than buyers who rely on a mortgage during uncertain market conditions.
Regional Divergence in Metro Housing Markets
National averages conceal stark geographic divides across the 50 most populous U.S. metropolitan areas analyzed via Multiple Listing Service (MLS) data. Denver recorded the highest share of active listings with price reductions at 30.9%, closely followed by Indianapolis at 29.9%. Three Texas metros rounded out the top five: San Antonio at 26.8%, Dallas at 26.6%, and Austin at 26.1%.
Conversely, San Francisco posted the lowest price-cut share at 9.6%. Fueled by high-salaried artificial intelligence talent deploying compensation packages from firms like OpenAI and Anthropic into local real estate, San Francisco remains one of only five seller’s markets tracked by Redfin. Other low-markdown metros include Newark at 12.2%, Chicago at 13.3%, New York at 13.6%, and Miami at 13.7%.
| Metropolitan Area | Share of Active Listings with Price Cuts |
|---|---|
| Denver | 30.9% |
| Indianapolis | 29.9% |
| San Antonio | 26.8% |
| New York | 13.6% |
| San Francisco | 9.6% |
Inventory Stagnation and Affordability Ceilings
While price cuts have grown more common, the broader inventory landscape remains constrained as some potential sellers elect to hold properties off the market rather than accept lower valuations. Others price properties realistically from the initial listing date, bypassing the need for subsequent markdowns. In August, U.S. home sellers outnumbered buyers by 58%, marking the widest gap recorded by Redfin since 2013.
Disagreements persist regarding the breadth of this transition. Lisa Sturtevant, chief economist at Bright MLS, noted that regional realities vary significantly from national summaries. Operating across a six-state region and Washington, D.C., Sturtevant stated, I would not necessarily call it a ‘buyer’s market’ as the Redfin headline suggests. Inventory is still very tight, and prices remain near record highs in many local markets,
as reported by Fortune. Furthermore, prospective buyers face severe affordability limits exacerbated by borrowing costs.
The Structural Advantage of All-Cash Transactions
With Freddie Mac putting the average 30-year fixed mortgage rate at 7.28% as of October 1—up from 6.34% a year prior—monthly debt service obligations have expanded significantly.
Michael Reher, an associate professor of finance at UC San Diego’s Rady School of Management, observed to Fortune, The best time and place to buy all-cash is during periods of uncertainty and illiquidity in the housing market.
Reher co-authored research demonstrating that cash purchasers secure properties for about 10% less on average than buyers who rely on a mortgage, as sellers accept valuation concessions to eliminate financing contingency risks.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
