One in five US home listings has now cut its price: 20.8% in September, the most in four years

The US housing market is stuck between sellers who will not leave and buyers who cannot afford to enter. Realtor.com's September report found that 20.8% of listings had a price reduction, the highest single-month share since October 2022 and above last September for the first time this year. Redfin says there were 62.6% more sellers than buyers in September, the widest gap in its records back to 2013. An Associated Press story carried by Fortune on Sunday followed sellers who have cut asking prices by $30,000 to $100,000 and still have no deal.

The numbers, from the source

One correction to the Associated Press version. It says the median listing price fell 1.2% from a year earlier for the 11th month in a row. In Realtor.com's report, 1.2% is the drop from August. The year-over-year decline is 1.4%, and that is the one that has now run 11 months. The direction is the same, but the headline figure is smaller than the annual drop.

Why sellers are giving in

Mortgage rates are the cause both reports point to. Freddie Mac's weekly survey put the 30-year fixed rate at 7.40% on October 8 and 15 and 7.32% on October 22, up from 5.98% on February 26, according to its published history. Redfin's latest weekly update has pending sales at the lowest level in its records going back to 2021, and the median monthly payment for a buyer at $2,796.

The effect on a payment is large. On a $320,000 loan, which is 80% of a $400,000 home, principal and interest at 7.32% comes to about $2,198 a month. At 5.98% it is about $1,914. The difference is $284 a month, or roughly $3,400 a year, before taxes and insurance. We calculated these with the standard 30-year amortization formula. A $30,000 price cut on a $480,000 house, like one in the AP story, lowers the monthly payment on an 80% loan at 7.32% by about $165, which does not offset the rate move.

Redfin's economist put it this way in the company's report: "This is a buyer's market born out of caution, not strength." Its data show 41 of the 50 most populous metro areas are buyer's markets, led by Miami, Nashville and Houston, with only five seller's markets, including San Francisco.

Who this affects

• Sellers who must move. People relocating for work or settling a divorce have the least room. Realtor.com found delistings under 6% of listings, in line with last year, so most sellers are not pulling their homes off the market.
• Buyers who qualify. They have more choice and bargaining room than at any time in Redfin's records. Higher rates mean sellers are more often paying toward closing costs or a rate buydown, as the AP report describes.
• Owners with a recent purchase. Someone who bought in 2022 or later, as in one AP example, may have little equity to absorb a price cut, which keeps them from lowering the price further.
• Agents, movers and contractors. Fewer closings means fewer moves and fewer pre-sale repair jobs, though sellers in the story are still spending on appliances and flooring to improve their odds.

What to watch

Realtor.com said this time of year normally shifts leverage toward buyers, but fewer buyers are showing up than normal. It is watching how deep the discounts get and whether they lead to signed contracts or just longer listings. Redfin's weekly median days on market was 50. The Federal Reserve meets this week, and the 10-year Treasury yield, which mortgage rates follow, closed Friday at 4.99%. For the rate outlook, see our 10-year yield chart and the Real Estate section.

Sources: Realtor.com Research (September 2026 housing report); Redfin (Oct. 14 and Oct. 22, 2026 reports); Freddie Mac Primary Mortgage Market Survey; The Associated Press via Fortune; Yahoo Finance. Payment figures calculated by The Company Chronicle for principal and interest only. This is market information, not investment advice.