According to Realtor.com’s latest housing market trends report for September, the number of homes for sale in the U.S. is on the rise, forcing some sellers to lower their prices.
The report notes that the median home price in the U.S. dropped from $429,990 in August to $425,000 in September, a decrease of nearly $5,000 in just one month. Additionally, the proportion of homes with reduced prices has increased by 0.9% compared to the same period last year.
Ralph McLaughlin, a senior economist at Realtor.com, pointed out that the percentage of homes with price reductions rose from 17.7% last year to 18.6% this September. Notably, this marks a 1% increase compared to the proportion of homes with price cuts in September from 2017 to 2019.
The report also revealed that the inventory of homes for sale in September grew by 34% compared to the previous year, giving buyers more options. McLaughlin explained that the decline in home prices indicates that sales are not meeting sellers’ expectations, prompting them to adjust prices to attract more buyers.
Taking a closer look at specific cities, California leads with the highest proportions of price reductions. San Francisco has a median listing price of $997,500, Riverside stands at $599,000, and San Jose has a median price of $1,432,170.
The city with the highest percentage of price reductions in the nation is Phoenix, Arizona, with a median listing price of $532,000. This is followed by Austin, Texas, with a median of $556,000, and Denver, Colorado, at $649,000.
