A recent study shows that homebuyers in the United States are benefiting from significant price discounts as sellers adjust their expectations in today’s housing market. According to Zillow, homes for sale had an average price cut of $25,000 in October, reflecting some of the largest discounts recorded in history.
While the average individual price drop remains steady at about $10,000, sellers are now more frequently lowering their asking prices as homes take longer to sell. The report highlights that nearly 27% of listings have seen price reductions.
Zillow’s senior economist, Kara Ng, pointed out that many homeowners have enjoyed significant increases in their property values in recent years. This gives sellers the flexibility to adjust prices while still securing a profit. Ng noted, “These discounts are bringing more listings in line with buyers’ budgets and fueling the most active housing market in three years. Patient buyers are reaping the rewards as the market continues to rebalance.”
In particular, the largest price cuts are found in pricier markets. For example, San Jose saw a median discount of $70,900, the highest of any metro area, while other major Californian cities like Los Angeles, San Francisco, and San Diego recorded median discounts of $61,000, $59,001, and $50,000, respectively. New York City also saw a similar reduction of around $50,000.
Conversely, some regions are experiencing smaller price cuts. In cities like Oklahoma City, Louisville, and St. Louis, cumulative median discounts hovered around $15,000 to $17,100, showing that not all markets have the same flexibility for adjustments.
Overall, while there are mixed signals across the country, this trend of price cuts is offering buyers a bit of relief in what has been a challenging housing market. With the right conditions, buyers are finding opportunities to enter the market at more affordable prices, particularly in competitive regions.
