Sellers in Buyer-Friendly Metros Cut Prices To Spur Demand for Midrange Homes: Here’s Where It’s Most Common

Much of the national housing market remains at a standstill, with sellers in some parts of the U.S. who are struggling to offload their properties increasingly offering price cuts.  

Slashing a home's asking price has been a common strategy this summer and early fall as elevated mortgage rates and reluctant buyers slowed the pace of the market.

Nationally, roughly 1 in 5 listings came with price reductions in September, according to the latest available monthly housing market trends report from Realtor.com®. 

However, a closer look shows that discounts were most common in the middle price tier where homes range from $350,000 to $500,000 and sellers are too impatient to wait for a buyer with an offer matching their asking price to come around.

Regionally, the inventory-rich South stands out with the highest share of listings with price cuts (21.1%), followed by the West (20.9%) and Midwest (19.2%).

At the metro level, four major cities lead in price reductions across multiple price tiers, with Portland, OR, at the forefront. The other three markets most prone to discounts are Denver, Austin, TX, and Indianapolis.

"Sellers in these cities are reading their local market signals loud and clear," says Realtor.com senior economist Jake Krimmel. "Homes are sitting on the market for longer and inventory is continuing to build, making conditions much more buyer friendly and putting sellers in a bind: Either cut prices or be prepared to wait." 

Stumptown leads in discounted homes

Portland, Oregon's largest city with a population of more than 635,000 inhabitants, had the highest share of listings with price cuts across three price tiers: $200,000 to $350,000 (affordable); $350,000 to $500,000 (midrange); and $500,000 to $750,000 (upper midrange), according to September data analyzed by Realtor.com experts. 

At the same time, Portland also ranked among the top five metros for price cuts in two higher price tiers: $750,000 to $1 million, and $1 million to $2 million. 

A zoomed-in view at Portland’s housing market reveals that price reductions are most common in the least expensive segment, with more than a third of all listings offering discounts. 

Just over 32% of all for-sale homes in Portland priced between $500,000 and $750,000—the city’s most common price range—saw price reductions.

And roughly the same share of listings priced between $350,000 and $500,000, which account for a quarter of Portland’s inventory, had reductions. 

Lindsey Culver, principal broker at Premiere Property Group in Portland, says a combination of factors is fueling this surge in price cuts.

"As affordability tightens, buyers become more price-sensitive, which means more homes sit on the market and then sellers are forced to adjust downward to attract offers," Culver tells Realtor.com.

Another important factor, according to Culver, is the still-high mortgage interest rates stuck in the low 6% range.

"Although mortgage rates aren’t at their absolute peak, they’ve remained elevated compared to a few years ago, which limits what [buyers] can afford in a home," she says.

On top of that, Portland's inventory has been rising. As of September, active listings were up nearly 17% year over year—and new listings were outpacing closings.

"With more competition, sellers must lower prices to stand out," adds Culver. "I am noticing the 'burbs are seeing longer days on market than inner neighborhoods."

The Portland broker notes that sellers facing a job relocation or major, time-sensitive life changes, such as marriage or a new baby, are often more inclined to "lower the price dramatically" and absorb the loss.

"If there is a motivated seller who has those time constraints, then likely a buyer could walk away with a deal and get the home for a lower price point," says Culver.  

Supply outweighs demand

Denver, which has seen its housing inventory soar and even surpass pre-pandemic norms, has followed a similar trajectory, ranking second in the share of price cuts across the first three price tiers ranging from $200,000 to $750,000. 

Meanwhile, in the luxury market segments between $750,000 and $2 million, Denver wound up in the lead, boasting the highest share of homes with price reductions. 

In the upper midrange of $500,000 to $750,000, Austin had close to 32% of listings with price cuts, the third-highest share, while in the more budget-friendly segment of $350,000 to $500,000, the Texas metro rounded out the top five, with roughly 30% of for-sale homes being discounted.

"The sellers who are trying to sell are people who need to sell, not want to sell," Brad Pauly, an Austin broker and the owner of Pauly Presley Realty, tells Realtor.com. 

Pauly explains that in Austin, which currently has a glut of inventory, sellers heavily outweigh buyers.

"Once all marketing efforts have been exhausted, the only opportunity to entice a suitable buyer is price," he says. "Sellers are willing to take a loss because there aren't other options except to lease the property and wait for the next hot market to sell."

Both Culver and Pauly agree that while some house hunters are taking advantage of the lower prices, there is a lot of economic uncertainty dampening demand.

Other supply-rich metros with sizable shares of listings with price cuts include Indianapolis, Columbus, OH, San Antonio, and Phoenix. 

Krimmel says sellers' reliance on price reductions is a natural response to shifting local supply and demand conditions. He also points out that whether these discounts are seen as positive or negative largely depends on one's perspective.

"For every seller reluctantly cutting prices is a buyer who sees homes getting more affordable," he says. "Sellers cutting prices in response to market conditions will bring about more sales, which is a positive sign for a market stuck in place throughout most of the country in 2025."