1 in 5 sellers just cut their price. Here's what to do now.

Sellers are dropping prices at a rate we've never seen before

One in five sellers across the country just cut their asking price.

According to a new Redfin report published September 30, 21.1% of active U.S. listings had a price reduction during the four weeks ending September 20. That's the highest September share in Redfin's records, which date back to 2022.

To put it in context: the September price-cut rate dipped to 17.9% in 2023, then reversed course, climbing to 19.0% in 2024, 19.8% in 2025, and now 21.1%. The direction since 2023 has been clear and consistent.

And yet, prices nationally aren't crashing. The national median home sold for $398,596 in August, up 2.2% year over year. Buyers simply have more options, more time, and more leverage than they've had in years, and sellers who don't respect that are the ones getting stuck.

Why sellers are cutting (and why some aren't)

There are really two types of sellers in today's market.

The first type prices with current data. They've looked at what similar homes nearby have actually sold for in the last 60 to 90 days, not 2022 comps, not what their neighbor "heard" a house sold for last spring. Their homes go under contract faster and closer to asking.

The second type is working off outdated information. Redfin Senior Economist Asad Khan described it plainly: "Sellers who price too high may be working off outdated comps or feel overly optimistic about the chance of sparking a bidding war, despite data that says it's unlikely. Many are eventually cutting their price as they come to terms with reality."

That reality includes mortgage rates averaging 7.40% nationally as of October 8 according to Freddie Mac, a national average of 50 days on market before a home sells, and 1,534,918 homes currently for sale across the U.S., up 2.7% from a year ago. Buyers have choices. They're taking their time. Overpriced listings don't get offers. They get ignored until the price drops.

Seller concessions are at a four-year high

Price cuts aren't the only shift happening. Concessions are climbing too.

In August 2026, 44.7% of U.S. home sales included a seller concession, up from 42.6% a year earlier. That's the highest August share in Redfin's data going back to at least 2020. Concessions cover things like closing cost credits, rate buydowns, and repair allowances.

Nearly half of all sellers are now putting something extra on the table to get deals done. Buyers who don't ask for concessions in this environment are almost certainly leaving money behind.

What overpriced listings actually cost sellers

The data doesn't capture this part directly, but experienced agents see it constantly: the homes that sit too long pay twice.

First, sellers lose time. A listing that starts too high and goes stale needs a price cut just to get traction again. By then, buyers are suspicious. They want to know what's wrong with it. Days on market becomes a red flag even when there's nothing actually wrong with the home.

Second, sellers lose leverage. Chasing buyers with markdowns is almost always less effective than attracting them with a sharp opening price. A home that opens at the right price generates competitive interest. A home that opens high and drops signals desperation.

That's why 50 days on market as the national median is worth paying attention to. If your home isn't under contract within 45 days, the market is giving you a clear signal.

What this means if you're thinking about selling

Sellers who go in with current data and realistic expectations are still finding buyers and capturing appreciation. Home values are still up 2.2% year over year. The window is open, but the strategy matters more than it has in years.

Before you list, do these four things:

• Pull comparable sales from the last 60 to 90 days, not from 2022 or 2023.
• Ask your agent for the current list-to-sale price ratio in your specific zip code.
• Find out how many days homes in your neighborhood are sitting before going under contract.
• Budget for the possibility of concessions. Nationally, nearly half of sales include them. The market has shifted, and the sellers who acknowledge that are the ones closing deals.

And if your home is already listed and sitting? Don't wait another 30 days hoping the right buyer materializes. A well-timed price adjustment almost always outperforms a stale listing that lingers another month.

What this means if you're buying

The leverage is real. Use it.

With more than 1.5 million homes for sale nationally, new listings up 4.3% from a year ago, and nearly half of sellers offering concessions, buyers are sitting in a position they haven't been in since before the pandemic.

Three concrete moves worth making right now:

• Target homes that have been on the market for 30 or more days. Those sellers are often highly motivated and open to real negotiation.
• Ask for concessions as part of your offer. Closing cost credits and rate buydowns are both reasonable asks in this market, and the data shows sellers are saying yes nearly half the time.
• Don't overthink a listing with a price cut. Often it just means the seller started too high, not that something is wrong with the home. A reduced listing can actually be the better deal.

What agents should take from this

The agents who are winning right now are the ones helping clients understand what the current data actually says, not what it said two or three years ago.

For listing agents, that means having the direct conversation about pricing before the listing goes live, even when it's uncomfortable. A home priced accurately sells. A home priced with wishful thinking sits and eventually sells lower.

For buyer's agents, it means educating clients that this market rewards strategic offers. Asking for concessions, negotiating on price for homes that have been sitting, and making reasonable inspection requests are all back on the table. Buyers who go in acting like it's 2021 are missing the moment.

What to do next

Whether you're buying or selling this fall, the most valuable thing you can do is get current on the numbers that matter in your specific market. Your zip code, your neighborhood, your property type.

Sellers who price with current data move their homes. Sellers who don't chase buyers with price cuts and still often end up lower than where they should have started.

And if you're buying? Your options are better today than they've been since at least 2020. More homes, more time, more room to negotiate. That window won't be open forever.

Your Zoodealio Home Report tracks the data that matters most for your home, updated with live market data and delivered straight to your inbox. Get yours here.