--- title: The Share of Homes for Sale With Price Drops Hits a Record High description: The share of homes for sale with price cuts is reaching its highest level ever — but that doesn't mean that real estate prices are dropping. authors: - name: Brenden Rearick role: Reporter url: https://money.com/author/brenden-rearick/ bio: Brenden Rearick is a former news reporter at Money who specialized in mortgages, real estate, and personal finance topics. education: University of Pittsburgh, BA at_money_since: 2023 articles: 133 covers: - Housing - Banking - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology former_staff: true editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. education: University of Florida at_money_since: 2018 articles: 453 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 - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2023-11-07T14:52:57.000Z' modified: '2024-01-10T15:14:12.000Z' section: Housing tags: - News word_count: 562 canonical: https://money.com/home-price-drops-record-high/ 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-illustration of a reduced price for sale sign with floating houses in the background.](https://img.money.com/2023/11/News-Homes-For-Sale-Price-Drop.jpg) The real estate market is fairly harsh for all parties involved right now, but here's a glimmer of good news for homebuyers: Sellers are slashing their prices at record levels. Real estate company Redfin reports that the share of [homes for sale with price drops](https://www.redfin.com/news/housing-market-update-price-drops-record-high/) is at its largest ever. The company measures this share by averaging the share of listings with price drops within a four-week window. During the four weeks ending Oct. 29, a whopping 6.9% of all homes on the market underwent price cuts. ## Why sellers are reducing home prices Redfin data analyst Dana Anderson wrote in a blog post that the spike in price reductions comes as sellers account for the high mortgage rates facing buyers. Influenced indirectly by the Federal Reserve, which has been ratcheting up rates for months to curb inflation, [mortgage rates](https://money.com/current-mortgage-rates/) recently reached 7.79% — the highest in 23 years. "High rates have forced some sellers to lower their asking price to make up for high interest rates on monthly payments," Anderson added. [Mortgage](https://money.com/what-is-a-mortgage/) rates have been a major influence on both buyer and seller behavior throughout 2023. Many sellers are essentially [trapped by their old mortgage rates](https://money.com/low-mortgage-rates-trap-home-sellers/), not wanting to give up their favorable 2-3% loans obtained during the pandemic. As a result, the number of new listings has only gone up by about 1% year-over-year. Buyers, therefore, have had to deal with low inventory and high asking prices in addition to surging mortgage rates. The rise in price cuts is *also* a result of sellers reckoning with the fact that buyers don't have the budgets to afford high list prices like they did in recent years. Mortgage rates aside, sticky inflation and stagnant wages have been major setbacks for buyers today, but, as Redfin agent Patrick Beringer said in the report, "some sellers are pricing too high because they have FOMO after their neighbor’s house sold well over asking price two years ago." ## Are homes becoming more affordable? This month's record high in home price cuts might come as little surprise to those who have kept an eye on the market. The share of homes with price drops has been on a fairly consistent upward trajectory since mid-spring, mirroring the rise in mortgage rates. Does it mean homes are becoming more affordable, though? Not necessarily. Median sales prices have risen by 3% nationwide year-over-year. In fact, all but five metro areas (Austin, Fort Worth and San Antonio, Texas; Tampa, Florida; and Portland, Oregon) saw price increases over the last 12 months. Newark, New Jersey, is the city with the largest spike, seeing prices rise by 14.8% over the last year, followed by San Jose and Anaheim, California. Make no mistake: Bidding wars for the limited inventory of homes are still very common in most areas, allowing prices to keep rising. Redfin says 29% of homes sold in the four weeks ending Oct. 29 closed above their listing prices. Still, that figure has been declining since July, when it was about 35%. It's a [confusing time for the market](https://money.com/home-buying-guide-fall-winter-2023/) overall. And while price cuts are becoming more normal, we certainly aren't in a buyer's market just yet. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/home-price-drops-record-high/#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 Drops Hits a Record 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-drops-record-high/#webpage", "url": "https://money.com/home-price-drops-record-high/", "name": "The Share of Homes for Sale With Price Drops Hits a Record High", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2023-11-07T14:52:57.000Z", "mainEntity": { "@id": "https://money.com/home-price-drops-record-high/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/home-price-drops-record-high/#breadcrumb" }, "dateModified": "2024-01-10T15:14:12.000Z" }, { "@type": "NewsArticle", "headline": "The Share of Homes for Sale With Price Drops Hits a Record High", "articleSection": "Housing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2023/11/News-Homes-For-Sale-Price-Drop.jpg", "width": 2880, "height": 1920, "caption": "News-Homes-For-Sale-Price-Drop" } ], "author": [ { "@type": "Person", "name": "Brenden Rearick", "url": "https://money.com/author/brenden-rearick/", "@id": "https://money.com/author/brenden-rearick/#author", "description": "Brenden Rearick is a former news reporter at Money who specialized in mortgages, real estate, and personal finance topics.\r\n\r\n", "email": "brenden.rearick@money.com", "alumniOf": "University of Pittsburgh, BA" } ], "publisher": "https://money.com/#organization", "datePublished": "2023-11-07T14:52:57.000Z", "description": "The share of homes for sale with price cuts is reaching its highest level ever — but that doesn't mean that real estate prices are dropping.", "abstract": "The share of homes for sale with price cuts is reaching its highest level ever — but that doesn't mean that real estate prices are dropping.", "@id": "https://money.com/home-price-drops-record-high/", "inLanguage": "en-US", "dateModified": "2024-01-10T15:14:12.000Z", "editor": [ { "@type": "Person", "name": "Julia Glum", "url": "https://money.com/author/julia-glum/", "@id": "https://money.com/author/julia-glum/#author", "description": "Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. 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