More Home Sellers Reduce Asking Prices as Summer Market Slows

More U.S. home sellers lowered asking prices in July, according to the latest housing market report from Realtor.com, as higher mortgage rates and slower seasonal buyer demand influenced listing activity. The data provides insight into pricing strategies, regional market conditions, and current affordability challenges.

Key Takeaways

• The share of U.S. home listings with price reductions reached 20% in July.
• Higher mortgage rates and seasonal demand slowed homebuying activity.
• Price cuts were most common in the West and South.
• Portland, Denver, Dallas, and Austin recorded some of the highest shares of discounted listings.
• National asking prices declined year over year while homes continued selling in a similar timeframe.

Home sellers reducing asking prices became more common across the United States in July as higher borrowing costs and slower seasonal buyer activity influenced the housing market, according to Realtor.com’s latest monthly housing report. The report found that 20% of active listings recorded price reductions during the month, indicating that more sellers adjusted pricing to attract buyers while mortgage affordability remained under pressure.

The increase followed several months in which sellers generally entered the market with more realistic asking prices. Earlier in the year, the share of listings with price reductions remained below year-earlier levels, but July marked a shift as buyer activity slowed during the summer season and homes remained available for longer in some markets. Buyers were also navigating conditions similar to those described in starter-home inventory improvements across U.S. regions, where affordability continued to vary by location. 

Home Sellers Reducing Asking Prices Becomes More Common in July

The July housing market data showed that one in five active home listings included a price reduction. Realtor.com reported that the share of discounted listings rose from 18.8% in June to 20% in July, bringing the national level close to the same point recorded a year earlier.

The increase suggests that sellers became more willing to adjust asking prices after listing homes, particularly as seasonal demand eased. Earlier in the spring, pricing activity indicated that many homeowners were setting more competitive prices before entering the market, reducing the need for later adjustments.

Although price reductions became more common during July, the figures do not indicate widespread price declines across every housing market. Instead, the report showed that pricing conditions varied considerably by region and local inventory levels. Similar pricing behavior has also been observed in homes selling below list prices within the foreclosure market, where buyers have increasingly sought discounted opportunities. 

National asking prices also continued their year-over-year decline. The typical asking price reached $428,950 in July, representing a 2.4% decrease compared with the same month in 2025.

Mortgage Rates and Seasonal Demand Influence Seller Pricing

Mortgage rates remained an important factor affecting buyer activity throughout July. Higher financing costs continued to limit affordability for many households, reducing purchasing power and slowing the pace of home sales during the summer season.

Seasonal demand also played a role. Housing activity often moderates during the middle of summer as vacations, school schedules, and other seasonal factors reduce the number of active buyers. Combined with elevated borrowing costs, this created additional pressure for sellers attempting to attract qualified purchasers.

The report noted that while pricing remained generally realistic compared with previous years, July reflected softer demand than many sellers may have anticipated. As more listings accumulated on the market, price adjustments became one method of improving buyer interest.

Time on market remained relatively stable despite the increase in price reductions. The typical home spent 57 days on the market, one day fewer than during the same period last year, indicating that completed transactions continued to move at a pace similar to recent months.

Regional Housing Markets Show Different Levels of Price Reductions

Housing market conditions continued to differ across major regions of the country, reflecting local inventory levels and buyer demand.

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Northeast and Midwest Maintain Lower Shares of Price Cuts

The Northeast recorded the lowest share of listings with price reductions during July at 13.7%. The Midwest followed with 18.7%.

These regions continued to benefit from relatively tighter housing inventory, limiting the need for widespread price adjustments. Demand remained comparatively stronger, allowing many sellers to maintain asking prices without substantial reductions.

Even so, July data showed modest increases in discounted listings in both regions compared with the previous year, indicating that pricing adjustments were becoming somewhat more common.

Western and Southern Markets Record Higher Discount Activity

The West recorded the highest regional share of discounted listings at 21.9%, while the South followed closely at 21.3%.

These regions generally offered buyers a larger selection of available homes, increasing competition among sellers. Higher inventory gave buyers more negotiating leverage and encouraged some homeowners to reduce asking prices to improve the visibility of their listings.

The regional differences illustrated that housing market conditions continued to vary based on local supply and demand rather than following a uniform national pattern.

Metro-Level Data Identifies Markets With the Most Discounted Listings

Several major metropolitan areas recorded substantially higher shares of discounted listings than the national average.

Portland Returns to the Top Position

Portland, Oregon, posted the highest share of price-reduced listings among the nation’s 50 largest metropolitan areas during July. Approximately 31% of active listings included price reductions.

Denver followed closely with 30.9% of listings receiving price cuts during the month after leading the rankings in June.

These figures indicate that sellers in several Western metropolitan markets faced increased competition as available inventory remained elevated.

Austin and Dallas Continue to Record Elevated Price Reductions

Austin and Dallas each remained among the metropolitan areas with the highest shares of discounted listings. Both markets recorded price reductions on 28.3% of active listings during July.

Higher inventory levels provided buyers with additional choices and increased the likelihood of sellers adjusting asking prices after properties entered the market. The Austin market has also been part of broader discussions around permanently affordable housing in Mueller, illustrating how local housing supply and affordability initiatives can shape market conditions. 

The report also noted that pricing strategies varied among individual sellers. Some homeowners initially listed above market expectations before reducing prices later, while others adjusted prices more quickly to remain competitive as new listings entered the market.

National Housing Market Data Reflects Current Pricing Conditions

Several additional indicators released in the July housing market report provided context for current market conditions.

Active inventory increased slightly compared with earlier months, although new listings remained generally unchanged from the previous year after exceeding 2025 levels during much of the spring selling season.

The combination of stable listing times, modest inventory growth, and increased price reductions suggested that sellers continued responding to changing buyer behavior rather than withdrawing homes from the market.

Mortgage affordability remained an important consideration for prospective buyers. Higher borrowing costs reduced purchasing budgets for many households, influencing both home search activity and seller pricing decisions.

The July data also showed that pricing adjustments did not occur evenly across all markets. Areas with stronger demand and more limited inventory generally experienced fewer price reductions, while markets with greater housing supply recorded larger shares of discounted listings.

Together, these indicators presented a detailed picture of current housing market conditions, with sellers increasingly balancing pricing expectations against buyer affordability and regional inventory levels.

Frequently Asked Questions

Why are more home sellers reducing asking prices this summer?

More sellers reduced asking prices in July as higher mortgage rates and slower seasonal buyer demand affected housing market activity, according to Realtor.com’s monthly report.

How many U.S. home listings had price reductions in July?

The report found that 20% of active home listings included a price reduction during July.

Which regions recorded the highest share of home price cuts?

The West recorded the highest share of discounted listings at 21.9%, followed by the South at 21.3%.

Which major metro areas had the most discounted home listings?

Portland recorded the highest share of discounted listings among the nation’s largest metropolitan areas, followed by Denver, Dallas, and Austin.

How are mortgage rates affecting home sellers and buyers?

Higher mortgage rates have reduced affordability for many buyers, contributing to slower demand and prompting more sellers to adjust asking prices to remain competitive.