Home Sellers Cutting Prices in 38 of 50 Largest U.S. Cities
Elevated mortgage rates are eroding buyer budgets, pushing sellers to accept below-asking offers across most major U.S. markets.
A notable power shift is quietly reshaping the American housing market. In 38 of the 50 largest U.S. cities, home sellers are now accepting offers below their listed asking prices — a sign that the prolonged era of sellers commanding top dollar, fueled by pandemic-era demand, is giving way to a more cautious buyer calculus driven by persistently high mortgage rates.
The dynamic reflects a broader affordability squeeze that has steadily worn down would-be buyers. When borrowing costs remain elevated, the pool of financially qualified buyers shrinks, and sellers — particularly those who priced ambitiously — face a harder choice: sit on the market or negotiate. Across most major metros, negotiation is winning out.
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What makes this moment analytically interesting is that it doesn't signal a classic buyer's market in the traditional sense. Inventory in many cities remains constrained relative to historical norms, meaning prices haven't collapsed — they've simply stopped rising unchecked. Sellers are discounting from inflated list prices, not necessarily from fair market value. The gap between asking and closing prices is a pressure valve, not a crash indicator.
The affordability paradox looms large here: even as sellers grow more flexible, the buyers who would benefit most from below-asking deals are often the same ones priced out by mortgage rates that have more than doubled from their pandemic-era lows. Flexibility at the negotiating table means little if financing the purchase remains out of reach for a substantial share of the workforce.
For prospective buyers who can secure financing, the current environment may represent a tactical opening — more negotiating leverage than existed even a year ago, in a majority of major markets. Whether that window widens or closes will depend heavily on the Federal Reserve's rate trajectory and how long sellers in the remaining 12 cities can hold firm. Continue reading at CNBC.
