After months of home price gains, homebuyers can finally look forward to seeing price cuts across the housing market. In July, the median home price dropped to $439,950 from $445,000 in June, online real estate platform Realtor.com reports. Additionally, there was a rise in the number of listings with price reductions, reaching a two-year high of 18.9% in July, and up 3.4% from the previous year. Of the 50 largest metropolitan areas, 47 experienced an increase in price cuts when compared with July 2023. The metros with the biggest increases in price reductions were Tampa, Fla., at 9.7%; Charlotte, N.C., at 9.5%; and Phoenix at 9.4%.
July is typically a peak time for home sales, so price cuts are unusual—but this summer’s market has been different for two reasons.
“First, rates remain higher than expected, which means there is less buyer activity,” says Realtor.com senior economist Ralph McLaughlin. “Second, 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.”
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