--- title: The Share of Homes for Sale With Price Cuts Hit a 6-Year High description: Zillow reports an increase in home sellers cutting list prices in 2024, likely because high mortgage rates is decreasing buyer interest. authors: - name: Pete Grieve role: Lead News Reporter url: https://money.com/author/pete-grieve/ bio: Pete Grieve is a personal finance reporter at Money who frequently covers news stories about housing topics including home buying, mortgage rates and homeowners insurance. education: University of Chicago, BA Political Science at_money_since: 2022 articles: 601 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://twitter.com/pete_grieve - https://linkedin.com/in/pete-grieve-b5aa02138 - https://www.facebook.com/petegrieve4 editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2024-05-17T12:00:21.000Z' section: Housing tags: - News word_count: 440 canonical: https://money.com/home-price-cuts-increase-zillow-report/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Photo collage Couple putting up a "For Sale" sign in-front of a house](https://img.money.com/2024/05/News-Home-Sales-Price-Cuts.jpg) Homebuyers accustomed to seeing prices going higher and higher are finally getting some relief. The share of home listings with price cuts climbed to a six-year high last month, likely due to weaker demand as a result of high [mortgage rates](https://money.com/current-mortgage-rates/). In April, 22.4% of home listings had price cuts, a 1.9 percentage point jump from a month prior and an increase from 17.2% in April 2023, according to a [new Zillow report](https://www.zillow.com/research/april-2024-market-report-34050/). It’s unusual for so many home sellers to cut their listing prices at this time of year when the housing market is often in overdrive, Skylar Olsen, chief economist at Zillow, said in the report. The increase in price cuts comes as sellers have been entering the market at a faster rate than buyers so far this [spring homebuying season](https://money.com/home-buying-guide-spring-2024/). The inventory of homes for sale is still about 36% lower than the pre-pandemic level, but the number of active listings increased 6.4% in April compared to the previous month, according to Zillow’s data. Meanwhile, [mortgage rates surged past 7%](https://money.com/tips-for-homebuyers-high-mortgage-rates/) in mid-April for the first time in 2024 after [inflation data](https://money.com/inflation-march-2024/) came in hotter than expected, causing buyers to sit back and wait for better financing opportunities. “The market coasted off of the speed built up in the first three months of the year. Home values continued to grow, but more slowly than the seasonal norm, and the speed of sales fell behind last year’s pace,” Olsen said. ## Home values remain high Unfortunately for buyers, despite a larger share of listings with price cuts, [home values](https://money.com/record-high-home-equity/) are at a record high. Based on Zillow’s index that estimates what existing homes are worth, the typical home value was $359,000 in April. That's a 4.4% increase from level a year ago of $344,000. Because mortgage rates have soared, the typical monthly payment of $1,908 is up even more in the past year: 11.6%. Olsen says recent price cuts from sellers could be a sign of “softer price growth ahead” amid weaker demand. However, there's an alternative explanation, which is that the increase in price cuts is more related to sellers going through a “feeling out process." Sellers may be adjusting prices more frequently because it's a complicated real estate environment and some owners have simply initially listed at an unrealistically high asking price. "The latter scenario becomes more likely in a rapidly changing market like we see today, with relatively few recent sales to compare against,” Olsen said. ## Buying a home doesn't have to be hard. Let Rocket Mortgage (NMLS #3030) experts guide your every step. ### Consulting with a mortgage expert is a smart way to get all the facts and make a well-informed decision. Click below and book it now. [View Rates](https://money.com/pr/q0ba5704b09e?ap_referrer=%2Fhome-price-cuts-increase-zillow-report%2F) ![](https://s3.consumersadvocate.org/prd/image/image/26681/medium_57f09f10-efb8-487d-a73e-5f7d605144eb.png) Imagine finally owning your dream home — Rocket Mortgage (NMLS #3030) can help! [View Rates](https://money.com/pr/t39f99e0e0ab?ap_referrer=%2Fhome-price-cuts-increase-zillow-report%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/home-price-cuts-increase-zillow-report/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Housing", "item": "https://money.com/housing/" }, { "@type": "ListItem", "position": 3, "name": "Home Buying", "item": "https://money.com/home-buying/" }, { "@type": "ListItem", "position": 4, "name": "The Share of Homes for Sale With Price Cuts Hit a 6-Year High" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/home-price-cuts-increase-zillow-report/#webpage", "url": "https://money.com/home-price-cuts-increase-zillow-report/", "name": "The Share of Homes for Sale With Price Cuts Hit a 6-Year High", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2024-05-17T12:00:21.000Z", "mainEntity": { "@id": "https://money.com/home-price-cuts-increase-zillow-report/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/home-price-cuts-increase-zillow-report/#breadcrumb" } }, { "@type": "NewsArticle", "headline": "The Share of Homes for Sale With Price Cuts Hit a 6-Year High", "articleSection": "Housing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2024/05/News-Home-Sales-Price-Cuts.jpg", "width": 2016, "height": 1344, "caption": "News-Home-Sales-Price-Cuts" } ], "author": [ { "@type": "Person", "name": "Pete Grieve", "url": "https://money.com/author/pete-grieve/", "@id": "https://money.com/author/pete-grieve/#author", "description": "Pete Grieve is a personal finance reporter at Money who frequently covers news stories about housing topics including home buying, mortgage rates and homeowners insurance.", "image": "https://img.money.com/2023/02/peter.png?w=350&h=430&crop=1", "email": "peter.grieve@money.com", "jobTitle": "Lead News Reporter", "alumniOf": "University of Chicago, BA Political Science", "sameAs": [ "https://twitter.com/pete_grieve", "https://linkedin.com/in/pete-grieve-b5aa02138", "https://www.facebook.com/petegrieve4" ], "worksFor": { "@id": "https://money.com/#organization" } } ], "publisher": "https://money.com/#organization", "datePublished": "2024-05-17T12:00:21.000Z", "description": "Zillow reports an increase in home sellers cutting list prices in 2024, likely because high mortgage rates is decreasing buyer interest.", "abstract": "Zillow reports an increase in home sellers cutting list prices in 2024, likely because high mortgage rates is decreasing buyer interest.", "@id": "https://money.com/home-price-cuts-increase-zillow-report/", "inLanguage": "en-US", "editor": [ { "@type": "Person", "name": "Brad Tuttle", "url": "https://money.com/author/brad-tuttle/", "@id": "https://money.com/author/brad-tuttle/#author", "description": "Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals.\r\n\r\n", "image": "https://img.money.com/2014/01/Brad-Tuttle.png?w=226&h=247&crop=1", "alumniOf": "Columbia University School of Journalism, MS", "sameAs": [ "https://twitter.com/bradrtuttle", "https://linkedin.com/in/brad-tuttle-834b225" ] } ], "wordCount": 440, "keywords": [ "News" ], "about": [ { "@type": "Thing", "name": "Housing in the United States", "sameAs": [ "https://en.wikipedia.org/wiki/Housing_in_the_United_States" ] }, { "@type": "Thing", "name": "Real estate", "sameAs": [ "https://en.wikipedia.org/wiki/Real_estate" ] } ] } ] } ```