If you’re among the scores of Americans who fear purchasing a home this year will be more challenging than ever, there’s reason to be hopeful.
The share of available listings that saw a price cut in July rose to 18.9%, up 3.4% compared to the same time period last year, according to a recent report from real-estate listings site Realtor.com.
Home prices may be softening, too. The median listing price for the entire US fell from $445,000 in June to $439,950 in July, though it is about flat compared to last year.
It all comes down to still-high mortgage rates that have compelled numerous would-be homebuyers to delay their plans, subsequently curtailing homebuying demand.
“Rates remain higher than expected, which means there is less buyer activity,” Ralph McLaughlin, Realtor.com senior economist, said in the report. “The prospect of lower mortgage rates coming this fall may have induced some buyers to wait. This combo has led sellers to lower their prices in order to attract more buyers.”
Of all US cities, Tampa experienced the largest year-over-year increase in price cuts. Although the city has attracted numerous homebuyers in recent years thanks to its appealing climate and relatively low cost of living, a combination of factors — including the surge in new residents — has driven up home prices and slowed sales.
According to Realtor.com, 30.6% of home prices in Tampa were cut in July, up from 20.9% in the same period last year.
Realtor.com analyzed data from 50 of the largest US metros to determine which saw the largest increase in the share of price cuts from July 2023 to July 2024. Forty-seven metros experienced more price cuts in 2024 than the previous year — a sign that sellers have to cave more when their properties don’t get snapped up.
“These are places where sellers have had a good run over the past few years with rising prices, but with the effects of higher rates fully settling in, sellers are having to come back down to earth with their price expectations,” McLaughlin said.
Below are the 10 big cities with the largest year-over-year increase in price cuts.