Homebuyers getting record $25,000 price discounts in housing market, report says

A new report finds that homebuyers are receiving some of the steepest discounts Price reductions Recorded as sellers adjust their forecasts.

Zillow found that a typical U.S. listing achieved cumulative price cuts of $25,000 in October, matching the largest discounts the company has ever recorded.

The typical size of an individual price markdown has changed little from recent years at around $10,000 — but the report noted that sellers are adjusting their sales prices more frequently as listings take longer to move. The share of listings that experienced price reductions is 26.9% of all U.S. listings, according to the report.

“Most homeowners have seen it Home values “Their prices have been rising over the past several years, which gives them the flexibility to cut a price or two while still making a profit,” said Kara Ng, chief economist at Zillow.

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“These reductions bring more listings in line with buyers’ budgets, and help fuel the most active housing market in three years,” Ng said. “Patient buyers are reaping the rewards as the market continues to rebalance.”

Zillow noted that the areas with the largest average discounts from the initial listing price were located in some of the most expensive housing markets in the country.

Discounts by sellers in San Jose The average cumulative discount was $70,900, the largest of all markets.

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Sellers discount prices to attract buyers, and exchange some of their shares to stimulate activity. (Andrew Burton/Getty Images)

Other California metro areas saw significant cuts, averaging $61,000 in Los Angeles, $59,001 in San Francisco, and $50,000 in San Diego – while New York City It also saw an average cumulative price decrease of $50,000.

In some urban areas, home sellers have not had much flexibility to lower prices. The smallest cumulative median price reductions in October were in Oklahoma City ($15,000), Louisville ($15,000), St. Louis ($15,100), Indianapolis ($16,000), and Detroit ($17,100).

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Home for sale in Austin, where buyers enjoy some of the biggest discounts compared to the initial listing price. (Photo by Brandon Bell/Getty Images)

Apart from Oklahoma CityThese metropolitan areas are seeing homes sell faster than the national average and listings tend to be newer, indicating that there is steady demand and that sellers do not need to make significant price cuts to attract a buyer.

Markets with less expensive homes to begin with tend to have larger relative discounts for buyers. Pittsburgh had a typical deduction of $20,000 with about 9% of the metro’s typical home value, which was the largest relative deduction among major markets in the Zillow report.

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New Orleans It also received a discount of about 9% compared to the value of a typical home on the market, while buyers saw similar price reductions in Austin (8.4%), Houston (8.2%) and San Antonio (7.9%).