US Home Listings See Steep Discounts in October

On Monday, Zillow reported that the typical US home listing received cumulative discounts totaling $25,000 in October, matching the largest discounts the company has tracked. Zillow said the deeper price cuts offer a small opening for patient buyers seeking relief from record-high housing costs.

According to Zillow, sellers are recalibrating expectations as affordability pressures weigh on buyers. The typical size of an individual price cut has remained near $10,000 in recent years, but with listings taking longer to sell, more sellers are making multiple reductions as the market shifts toward buyers.

Commenting on the report, Zillow Senior Economist Kara Ng said:

“Most homeowners have seen their home values soar over the past several years, which gives them the flexibility for a price cut or two while still walking away with a profit. These discounts are bringing more listings in line with buyers’ budgets and helping fuel the most active fall housing market in three years. Patient buyers are reaping the rewards as the market continues to rebalance.”