The share of home sellers reducing their asking prices has pulled back from a record high, signaling a modest shift in negotiating power — though buyers still hold the upper hand in many markets.
Source: Original report
After reaching a record high last summer, the share of U.S. home sellers cutting their asking prices has begun to edge lower, according to new data from Redfin. Just over 35% of sellers reduced their list price in April, down slightly from August's peak of 36.6% on a seasonally adjusted basis. The figures reflect a housing market that is slowly rebalancing, though it remains tilted toward buyers in many regions.
Why Price Cuts Are Becoming Less Frequent
Several factors are converging to reduce the frequency of price reductions. Homebuyer demand has picked up modestly as labor market conditions improve and consumer confidence in personal earnings stabilizes. While sellers still outnumber active buyers in most markets, that gap has narrowed enough to give sellers a slight edge they lacked in recent months.
Inventory growth has also slowed compared to last year. The surge in listings that gave buyers maximum leverage through much of 2025 has moderated, easing competitive pressure on sellers to slash prices in order to attract offers.
Additionally, sellers appear to be entering the market with more realistic expectations. After years of subdued homebuying demand, many are pricing closer to market value from the outset, which reduces the need for subsequent reductions. Redfin agent Justin Gomez, based in Omaha, noted that buyer activity has accelerated across virtually all price points in recent weeks, with bidding wars reemerging on some listings.
When sellers do cut prices, the average reduction is approximately 4% — a figure that has remained consistent over roughly the past two years.
Philadelphia and Jacksonville Lead Monthly Declines
Among the 48 major metros Redfin analyzed, Philadelphia saw the sharpest month-over-month drop in price-cut activity. About 30.3% of Philadelphia sellers reduced their price in April, down from 33.7% in March on a seasonally adjusted basis. Jacksonville, Florida followed closely, with 44.9% of sellers cutting prices compared to 47.7% the prior month. Montgomery County, Pennsylvania rounded out the top three markets showing the largest declines.
Phoenix, Seattle and Orlando Bucked the Trend
Not every metro moved in the same direction. Price cuts became more common in 21 of the markets analyzed. Phoenix posted the largest increase, with more than half of sellers — 50.8% — reducing their asking price in April, up from 48.1% a month earlier. Seattle and Orlando also saw month-over-month increases in the share of price-cutting sellers.
Texas Cities and Sun Belt Markets Remain Strong Buyer Territories
The metros where price reductions are most prevalent continue to be concentrated in Texas and the broader Sun Belt:
- San Antonio: 58.7% of sellers cut prices — the highest share of any metro analyzed
- Austin: 55.8% of sellers reduced their asking price
- Phoenix: 50.8%
- Dallas: 50.5%
- Tampa, FL: 48.2%
All five of these markets are among the country's most buyer-friendly, with seller counts roughly double the number of active buyers. Notably, price cuts are trending downward in four of these five metros — San Antonio, Austin, Dallas and Tampa — suggesting even these markets may be slowly tightening.
San Francisco Sellers Face the Least Pressure to Cut
At the other end of the spectrum, San Francisco recorded the lowest rate of price reductions among all metros studied. Only 13.9% of sellers there dropped their asking price in April, a reflection of the city's recent shift to a seller's market driven by strong demand tied to the local artificial intelligence industry. Newark, New Jersey and San Jose, California also ranked among the markets with the fewest seller price cuts, alongside Chicago and Providence, Rhode Island.
What This Means for Buyers and Sellers
The data suggests that the window of maximum buyer leverage may be narrowing, at least modestly. Sellers who price strategically from day one appear less likely to need corrections later. Buyers, while still holding a relative advantage in many Sun Belt metros, may find that aggressive negotiating tactics are less effective than they were even six months ago. The overall trajectory points toward gradual stabilization rather than a sharp reversal in either direction.
