The housing market remains stuck in a slowdown, but buyers can celebrate a welcome trend: home prices are starting to decline.
Price reductions are becoming increasingly common across the nation’s housing markets, reflecting a clear shift in favor of buyers as mortgage rates have risen steadily throughout 2026.
About 21% of sellers with active listings lowered their asking price in the four weeks ending September 20, according to a recent analysis by Redfin. This marks the highest share of price cuts for this time of year since at least 2022, when Redfin began tracking the data, the real‑estate listings platform said last week.
After the pandemic’s buying frenzy, the housing market has been weak, and the downturn has intensified in recent months as mortgage rates climbed. The average 30‑year fixed rate broke 7% in September for the first time in years, highlighting a sharp rise in borrowing costs driven by higher bond yields. On Monday the rate was near 7.5%.
“Many sellers are eventually trimming their price as they accept the new reality: mortgage rates are above 7%, the economy is uncertain, and homes are staying on the market longer,” said Asad Khan, a senior economist at Redfin.
**The 12 U.S. cities with the highest share of homes seeing price cuts are:**
Denver, CO
Percentage of active listings with a price reduction: 30.9%
Year‑over‑year change: +3.1 percentage points
Median sale price (August 2026): $619,909
Indianapolis, IN
Percentage of active listings with a price reduction: 29.9%
Year‑over‑year change: +2.0 percentage points
Median sale price (August 2026): $259,828
San Antonio, TX
Percentage of active listings with a price reduction: 26.8%
Year‑over‑year change: +0.7 percentage points
Median sale price (August 2026): $264,825
Dallas, TX
Percentage of active listings with a price reduction: 26.1%
Year‑over‑year change: +1.1 percentage points
Median sale price (August 2026): $448,703
Austin, TX
Percentage of active listings with a price reduction: 26.0%
Year‑over‑year change: +0.0 percentage points
Median sale price (August 2026): $549,636
Portland, OR
Percentage of active listings with a price reduction: 25.9%
Year‑over‑year change: +0.9 percentage points
Median sale price (August 2026): $524,653
Minneapolis, MN
Percentage of active listings with a price reduction: 25.3%
Year‑over‑year change: +3.7 percentage points
Median sale price (August 2026): $374,752
Seattle, WA
Percentage of active listings with a price reduction: 24.3%
Year‑over‑year change: +3.5 percentage points
Median sale price (August 2026): $874,421
Fort Worth, TX
Percentage of active listings with a price reduction: 24.2%
Year‑over‑year change: +0.2 percentage points
Median sale price (August 2026): $332,480
Houston, TX
Percentage of active listings with a price reduction: 23.9%
Year‑over‑year change: -0.6 percentage points
Median sale price (August 2026): $349,769
Boston, MA
Percentage of active listings with a price reduction: 23.8%
Year‑over‑year change: +7.6 percentage points
Median sale price (August 2026): $859,431
Jacksonville, FL
Percentage of active listings with a price reduction: 23.8%
Year‑over‑year change: +0.3 percentage points
Median sale price (August 2026): $308,890