Home Sellers Are Cutting Prices at a Record Rate to Lure Skittish Buyers

Redfin reports the typical home that sold in August went for nearly 4% under its asking price—the steepest discount for that month since 2019

SEATTLE--(BUSINESS WIRE)-- One of every six (16.7%) U.S. home sellers dropped their asking price in August, up from 15.9% a year earlier and the highest share for that month in records dating back to 2012. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket.

August saw the highest share for any time of year except the previous two months, when the portion of listings with a price cut hit 16.8% (June) and 17.4% (July). Note that the share of listings with price drops typically declines from June/July to August because that’s the seasonal pattern.

Not only are a bigger share of for-sale homes seeing price drops, but the typical discount from the original list price is the biggest it has been since before the pandemic. The typical home that sold in August went for 3.8% less than its original asking price—the steepest discount for that month since 2019.

More sellers are cutting prices because high housing costs, economic uncertainty and rising inventory have made it a buyer’s market. While inventory has lost steam in recent months, it’s still outpacing demand. In August, home sellers outnumbered buyers by more than 500,000, the second-biggest gap in records dating back over a decade. That has led to price drops because when buyers have more options to choose from, they’re not willing to pay as much for a home.

Sellers are still catching up to the buyer’s market dynamic; many sellers are listing too high. When sellers realize their home is priced too high, they sometimes bring it down to attract a buyer and sometimes pull the home off the market.

“While some home sellers have come to terms with the realities of today’s housing market, many are still hoping to cash in on the pandemic-era housing market, when high demand was pushing many sale prices way over asking,” said Redfin Senior Economist Asad Khan. “Price drops can signal weakness to buyers and lead to further cuts, so home sellers should consult a local agent to set a realistic price from the beginning. It’s also wise for sellers to be patient, understand that it may take a few weeks or even a few months to offload their home in today’s slower-than-usual market, and be open to making concessions.”

Price Drops Are Most Common For Single-Family Homes

Single-family home listings are driving the price-drop trend.

Nearly one in five (18.3%) single-family-home listings had a price drop in August, compared with 12.8% of condo listings and 11.5% of townhome listings.

Sellers of single-family homes are more commonly dropping prices because condo sellers have had longer to catch up to the realities of today’s market. The condo market has been suffering for many years, partly because homebuyers in Florida and Texas backed away from condos amid surging insurance costs and HOA fees. Those who are selling condos are more likely to set realistic prices from the start. Additionally, price drops are historically more common for single-family homes than condos or townhouses, likely because single-family homes are more difficult to price, as they have more variables and are more likely to have been renovated to the owner’s taste.

Price Drops Becoming More Common in Nearly Every Major U.S. Metro

In Denver, nearly one-third (31.1%) of home sellers dropped their asking price in August, the highest share of the 50 most populous U.S. metros. It’s followed by Indianapolis (30.7%) and San Antonio (28.5%).

There are seven other metros where over one-quarter of sellers dropped their price, and most are in Texas and Florida: Austin, Dallas, Tampa, Houston, Jacksonville, Portland, OR and Fort Worth.

“Supply is stacking up and we’re seeing price drop after price drop,” said Crystal Zschirnt, a Redfin Premier agent in Dallas. “House hunters are still on the fence, hoping mortgage rates come down more before they buy. But the buyers who are jumping in now are the ones who are getting a good deal: A fair price, concessions from the seller, and maybe even help buying down their rate. The sellers who are willing to give concessions and sell for slightly less than they want are usually the ones who need to offload their home quickly; maybe they’re moving out of state or need a bigger home because they’re expanding their family. Buyers should consider looking at homes that have been on the market for several weeks; they may get a deal.”

The share of listings with a price drop rose in 38 of the 50 most populous metro areas. The biggest increases were in Washington, D.C., San Jose, CA and Indianapolis. The biggest declines were in San Antonio, Tampa, and West Palm Beach, FL.

Price drops were least common in major coastal metros. In Newark, NJ, 10.7% of sellers dropped their asking price, the smallest share in this analysis, followed by New York (11.7%) and San Francisco (12.2%).

To view the full report, including a chart and additional metro-level data, please visit:
https://www.redfin.com/news/price-drops-record-rate-august-2025

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.

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Source: Redfin