Key Details:
- Realtor.com reports September inventory rose 17% year-over-year, marking the 23rd straight month of growth, with active listings topping 1.1 million.
- Nearly 1 in 5 homes cut prices, led by mid-tier listings at 21.6%, while reductions were least common in luxury homes at 13.3%.
- Regionally, the South and West saw the highest share of price cuts at just over 21%.
One in five sellers had to drop their price in September.
That’s not something we’ve been able to say often in the past few years. And it’s another sign the market is slowly shifting back toward buyers.
According to Realtor.com’s September 2025 Monthly Housing Trends report, the share of homes with price reductions reached 19.9%, unchanged from August but up 1.2 percentage points from August 2024.
Chief Economist Danielle Hale summed it up this way:
“September’s trends show a housing market increasingly tilting in buyers’ favor, with a rising inventory of homes for sale, longer days on market and more competitive pricing.
“At the same time, a Realtor.com analysis of seasonal trends shows the week of October 12–18 offers a particularly good window for buyers. While market power varies across regions and price tiers, reflecting economic conditions, in many areas momentum is lining up with seasonal price cuts and other advantages, which will make this fall particularly buyer-friendly relative to recent years.”
Mid-Tier Sellers Feel the Pressure First
Luxury sellers can usually wait things out, but lower- and mid-tier sellers are making adjustments. Homes priced between $350,000 and $500,000 saw the biggest share of price cuts at 21.6%. On the high end, just 13.3% of listings over $1 million dropped their asking price.
Here’s the breakdown across price tiers:
- Under $350,000: 20.8% cut prices
- $350,000–$500,000: 21.6% (highest share)
- $500,000–$750,000: 21.1%
- $750,000–$1 million: 18.3%
- Over $1 million: 13.3%
Regionally, sellers in the South and West were the most likely to cut, each just above 21%. The Northeast held the lowest share at 14%, while the Midwest sat at 19.2%.
At the metro level, some markets are seeing price cuts on nearly a third of listings:
- Denver: 30.7%
- Portland, OR: 30.2%
- Indianapolis: 29.7%
Inventory Keeps Rising, but the Pace Is Slowing
Inventory has now grown for 23 months in a row compared to the previous year. In September, active listings were up 17% year-over-year, topping 1.1 million homes for the fifth month straight. The growth rate has slowed since peaking in May at 31.5%, falling to 20.9% by August and 17.0% in September.
New listings were down 1.2% compared to last September and down 1.8% from August. Regional differences tell the story:
- Midwest: +2.4% new listings
- Northeast: +1.3%
- West: -0.1%
- South: -3.5%
At the metro level, the gaps are striking:
- Biggest gains: Denver (+59.6%), San Antonio (+49.6%), Austin (+46.9%)
- Most undersupplied: Hartford (-74.8%), Chicago (-56.9%), Providence (-51.7%)
Ten of the 50 largest U.S. metros now have inventories at least 25% above pre-pandemic levels, all of them in the South or West.
On the flipside, 17 of the top 50 remain at least 25% below those norms.
Prices Hold Steady, Long-Term Gains Still Pinching Buyers
Nationally, the median list price was $425,000 in September, flat compared to last year and down 1.2% from August. Regionally, prices moved in different directions:
- West: $600,000, down 3.6% YoY
- South: $388,500, down 0.4% YoY
- Northeast: $525,000, down 0.4% YoY
- Midwest: $319,950, unchanged YoY
Short-term price drops are helping buyers in some markets, but the long-term picture is still tough. Since 2019, the typical list price has climbed 36%. Price per square foot is up more than 50% in the same period.
Homes Sitting Longer on the Market
Sellers are also waiting longer to find buyers. The median days on market in September was 62, which is seven days longer than last year and two days longer than August. It’s the 18th straight month of year-over-year increases.
Breakdown by region:
- West: +10 days vs. last year
- South: +8 days
- Midwest: +3 days
- Northeast: +1 day
In 45 of the 50 largest metros, homes are sitting longer. Florida and parts of the West stand out:
- Miami: +16 days
- Orlando: +14 days
- Las Vegas: +13 days
- Tampa: +13 days
What This Means Now
The big picture is simple: the market is cooling, but not evenly. Nearly one in five homes cut prices last month, inventory is still rising, and homes are taking longer to sell.
At the same time, some regions like the South and West are flooded with supply, while the Northeast and Midwest are still tight.
For you, that means client conversations need to stay local and specific. In markets like Denver or San Antonio, buyers may have more leverage than they’ve had in years. In places like Hartford or Chicago, low supply is still keeping conditions competitive.
The national numbers show the shift, but the real work is helping clients understand what those numbers mean in their neighborhood.
