US home sellers lower prices due to housing slump

Selling a home in the US has become increasingly difficult as high mortgage rates, rising housing costs, and economic uncertainty keep buyers on the sidelines. 

Many homeowners are delaying major life decisions, including job relocations, moving to larger homes and downsizing after their children leave home.

Sellers cut prices and offer buyer incentives
Unlike the housing boom earlier this decade, when low mortgage rates fueled bidding wars, sellers now face pressure to reduce asking prices and offer financial incentives. These include covering closing costs, paying for repairs, and helping buyers lower their mortgage rates.

Some homeowners have withdrawn their properties from the market after months without offers, while others continue to wait for buyers rather than accept steep price cuts.

Mortgage rates weigh on demand
The average 30-year mortgage rate climbed to 7.4% in October, its highest level in nearly three years.

The national median home listing price fell 1.2% year over year in September to $419,250, marking its 11th consecutive monthly decline, according to Realtor.com. About 21% of listings recorded price cuts, the highest share in four years.

Sellers outnumber buyer
Redfin data showed that sellers outnumbered buyers by about 63% across the 50 largest US metropolitan areas in September. The roughly 929,000 buyers represented the lowest figure on record since 2013.

With fewer buyers competing for homes, sellers must offer better deals or risk waiting months to close a sale. Although the shift gives buyers greater negotiating power, affordability challenges continue to keep many out of the market.