By Snejana Farberov | Realtor.com
Homeowners eager to sell this spring are slashing prices to entice buyers who might otherwise be reluctant to jump into the market amid growing affordability concerns and economic uncertainty. Sun Belt metros are leading the charge when it comes to price cuts.
Of the 10 housing markets boasting the highest share of marked-down homes for sale, nine are scattered around the balmy region spanning the Southwest to Southeast, according to the latest data from Realtor.com® economists.
The common denominator among all 10 cities is that each has seen its inventory skyrocket from a year ago, with increases ranging from just under 28% in Palm Bay, FL, to a staggering 65% in Denver.
“As inventory builds up, homes sit on the market for longer, pushing sellers to reduce their asking price to drum up some buyer attention,” says Realtor.com senior economic research analyst Hannah Jones.
Phoenix topped the list of metros with the most price reductions on homes, with about a third of nearly 20,000 active listings in the city seeing asking prices slashed in April.
Notably, the share of discounted for-sale homes in Phoenix has surged by 7.6% compared with April 2024, the largest spike among the top 10 metros.
The median list price in Phoenix was $525,000 last month, down more than 2% compared with a year ago, and the typical home spent 52 days waiting for a buyer in April, which was a couple of days faster year over year.
“Sellers in this market face significant competition from other sellers, which can make it a challenge to grab buyer attention,” says Jones. “Listing a competitively priced, move-in ready home is the best way for sellers to attract buyers.”
Florida dominates the segment of home price reductions
Perhaps unsurprisingly, considering Florida’s cooling housing market, which has been due to a combination of oversupply and plunging demand, cities across the Sunshine State accounted for more than half of the U.S. metros with the most price cuts.
Roughly 1 in 3 listed homes in North Port and Tampa came with price cuts in April, followed by Cape Coral, with over 28%, and Jacksonville, with more than 27.5%.
Among all the metros on the list, only Cape Coral, at No. 4, saw an annual downtick of 0.3% in the share of homes with asking price reductions, but homes there lingered on the market the longest, at 81 days.
Denver, the sole non-Sun Belt entry in the top 10, had the fifth-largest portion of for-sale homes with price cuts, at 27.2%, up more than 6% from a year ago. It was the sharpest annual increase among all the listed housing markets.
The Mile High City also saw the largest year-over-year surge in inventory, at 65%, and had the highest median list price, which reached $599,450.
Palm Bay, FL, Deltona, FL, Austin, TX, and Charleston, SC, rounded out the top 10, with about a quarter of listings in each city marked down.
While having to shave thousands of dollars off an asking price is not ideal for sellers, it offers welcome relief for budget-minded house hunters.
“Buyers are in a good position to negotiate in these markets,” notes Jones. “Sellers will likely be flexible and willing to negotiate price or terms to be favorable for both parties.”
The 10 metros with the most home price reductions
1. Phoenix, AZ
Share of listings with price cuts: 31.3%
Number of listings: 19,981
Inventory increase year over year: 33.4%
Median list price: $525,000
Days on the market: 52
2. North Port, FL
Share of listings with price cuts: 30.1%
Number of listings: 11,234
Inventory increase year over year: 31.9%
Median list price: $490,500
Days on the market: 70
3. Tampa, FL
Share of listings with price cuts: 29.3%
Number of listings: 19,310
Inventory increase year over year: 32.1%
Median list price: $410,000
Days on the market: 58
4. Cape Coral, FL
Share of listings with price cuts: 28.2%
Number of listings: 14,580
Inventory increase year over year: 41.4%
Median list price: $435,000
Days on the market: 81
5. Jacksonville, FL
Share of listings with price cuts: 27.6%
Number of listings: 9,676
Inventory increase year over year: 35.2%
Median list price: $399,995
Days on the market: 57
6. Denver, CO
Share of listings with price cuts: 27.2%
Number of listings: 10,345
Inventory increase year over year: 65%
Median list price: $599,450
Days on the market: 36
7. Palm Bay, FL
Share of listings with price cuts: 26.9%
Number of listings: 4,562
Inventory increase year over year: 27.8%
Median list price: $389,825
Days on the market: 61
8. Deltona, FL
Share of listings with price cuts: 26.7%
Number of listings: 6,892
Inventory increase year over year: 30.9%
Median list price: $394,450
Days on the market: 70
9. Austin, FL
Share of listings with price cuts: 25.9%
Number of listings: 11,073
Inventory increase year over year: 24.5%
Median list price: $525,000
Days on the market: 44
10. Charleston, SC
Share of listings with price cuts: 25.8%
Number of listings: 3,542
Inventory increase year over year: 42.1%
Median list price: $525,000
Days on the market: 41