Home prices are dropping the most in these 12 metro areas as inventory piles up
Price cuts are becoming more common in housing markets across the US, as buyer demand wanes amid this year's surge in mortgage rates.
More sellers are slashing prices on their homes to entice buyers fatigued by rising rates.
Around 20% of sellers issued a price cut on an active listing last month, Redfin found.
Price cuts are the most common in Denver, Indianapolis, and San Antonio as inventory rises.
The housing market is still mired in a slowdown , but there's good news for buyers: home prices are coming down.
Price cuts are becoming more common in housing markets across the country, a testament to how the real estate market has increasingly shifted toward buyers mortgage rates have steadily climbed in 2026.
Around 21% of sellers with active listings cut their asking price for their home in the four weeks leading up to September 20, according to a recent Redfin analysis. It marks the highest proportion of sellers that have slashed prices in this time of the year since at least 2022, when Redfin began tracking the data, the real estate listings site said last week.
The housing market has been anemic in the years following the pandemic buying frenzy, though the freeze appears to have deepened in the last few months as mortgage rates have climbed. The average 30-year fixed mortgage rate broke above the 7% mark for the first time in years in September, reflecting how borrowing costs for consumers have risen dramatically amid the spike in bond yields. On Monday, the rate was close to 7.5%.
"Many are eventually cutting their price as they come to terms with reality: Mortgage rates are sitting above 7%, the economy is uncertain, and many homes are lingering on the market," Asad Khan, a senior economist at Redfin, said.
Here are the 12 cities in the US that are seeing the most homes with price cuts:
Share of active listings with a price drop : 30.9%
Median sales price (August 2026) : $619,909
Share of active listings with a price drop : 29.9%
Median sales price (August 2026) : $259,828
Share of active listings with a price drop : 26.8%
Median sales price (August 2026) : $264,825
Share of active listings with a price drop : 26.1%
Median sales price (August 2026) : $448,703
Share of active listings with a price drop : 26.%
Median sales price (August 2026) : $549,636
Share of active listings with a price drop : 25.9%
Median sales price (August 2026) : $524,653
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