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Price cuts hit a record high in September as mortgage rates climb
foxbusiness.com • • business
Key Points:
- Despite an increase in sellers cutting prices, homebuyers continue to face affordability challenges due to elevated mortgage rates, according to Realtor.com's latest housing report.
- In September, 20.8% of active listings had price reductions—the highest on record for that month—with active home inventory rising 5.4% year-over-year to over 1.161 million homes.
- Mortgage rates have increased significantly, rising nearly 40 basis points in the past four weeks and over 70 basis points compared to last year, which has dampened buyer activity and led to a 4.1% drop in homes under contract year-over-year.
- The median listing price fell 1.2% monthly and 1.4% annually to $419,250, though prices remain substantially higher than pre-pandemic levels, with a 34.2% increase since September 2019.
- Economists will be watching October closely to see if sellers respond to tougher market conditions with deeper or multiple price cuts and whether this leads to increased sales or longer listing times amid ongoing market stagnation.
