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Mortgage Rates Plummet: Top 10 Housing Markets See Most Price Cuts

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Understanding the Real Estate Market: Seller’s, Buyer’s, or Balanced?

The real estate market can be complex, with different dynamics depending on where you live. Whether you're a buyer or a seller, understanding whether you're in a seller’s market, a buyer’s market, or a balanced market is crucial for making informed decisions. While national trends provide a general overview, local conditions often tell a more accurate story.

Mortgage rates have recently seen a decline, which can influence buyer behavior and overall market activity. According to Freddie Mac data, the 30-year fixed-rate mortgage dropped by 15 basis points from the previous week, marking the largest weekly decrease in over a year. This drop could make homeownership more accessible for some buyers. However, despite this change, home prices have remained relatively stable nationwide. Realtor.com reports that the national median list price is around $429,990, nearly unchanged from the past year.

Despite this stability, the trajectory of home prices varies significantly across different regions. Data from Realtor.com shows that among the 50 largest metro areas, seven are considered buyer’s markets, 20 are seller’s markets, and 23 are in balance. The current trend indicates that the biggest price reductions are occurring in the South and West. Chris Colgan, CEO of the Chris Colgan Real Estate Team, highlights that these areas are seeing significant changes as supply outpaces demand.

Real estate professionals like Ravi Kantha, a broker with Serhant, emphasize that several factors influence the market. “Buyers look for value, lifestyle, and stability,” he says. Cities with affordable housing, strong job markets, and appealing quality-of-life features tend to attract more buyers. However, if prices exceed what buyers perceive as reasonable, they may step back, regardless of how popular a city was previously.

Top 10 Housing Markets with the Most Price Cuts

According to Zillow’s latest data, certain housing markets are experiencing a high percentage of homes with price cuts. These markets are primarily located in the South and West, where an oversupply of homes has led to increased competition among sellers.

  1. Colorado Springs, Colo.
  2. Total share of listings with price cuts: 38.4%
  3. For sale inventory: 3,052
  4. Average home value: $455,747
  5. 1-year value change: -2.4%

  6. Median days to pending: 23

  7. Denver, Colo.

  8. Total share of listings with price cuts: 38.2%
  9. For sale inventory: 4,629
  10. Average home value: $546,249
  11. 1-year value change: -4.5%

  12. Median days to pending: 29

  13. Warrensburg, Mo.

  14. Total share of listings with price cuts: 37.9%
  15. For sale inventory: 127
  16. Average home value: $262,722
  17. 1-year value change: +1.6%

  18. Median days to pending: 23

  19. New Castle, Ind. (tie)

  20. Total share of listings with price cuts: 37.5%
  21. For sale inventory: 86
  22. Average home value: $166,778
  23. 1-year value change: +5.1%

  24. Median days to pending: 8

  25. Raleigh, N.C. (tie)

  26. Total share of listings with price cuts: 37.5%
  27. For sale inventory: 2,049
  28. Average home value: $443,820
  29. 1-year value change: -2.5%

  30. Median days to pending: 23

  31. Zanesville, Ohio

  32. Total share of listings with price cuts: 37.4%
  33. For sale inventory: 173
  34. Average home value: $202,101
  35. 1-year value change: +2.8%

  36. Median days to pending: 14

  37. Pierre, S.D.

  38. Total share of listings with price cuts: 37.3%
  39. For sale inventory: 57
  40. Average home value: $301,620
  41. 1-year value change: +5.9%

  42. Median days to pending: N/A

  43. Bennettsville, S.C.

  44. Total share of listings with price cuts: 37.0%
  45. For sale inventory: 25
  46. Average home value: $100,103
  47. 1-year value change: -17.2%

  48. Median days to pending: N/A

  49. Hastings, Neb.

  50. Total share of listings with price cuts: 36.8%
  51. For sale inventory: 109
  52. Average home value: $206,242
  53. 1-year value change: +4.0%

  54. Median days to pending: 20

  55. Dallas, Texas

  56. Total share of listings with price cuts: 36.7%
  57. For sale inventory: 5,494
  58. Average home value: $311,285
  59. 1-year value change: -4.8%
  60. Median days to pending: 33

Markets with the Fewest Price Cuts

On the flip side, some housing markets are experiencing minimal price cuts. According to Zillow’s data, four of the top 10 markets with the fewest price cuts are located in Wisconsin. Kara Ng, senior economist at Zillow, explains that this could be due to affordability ceilings in rural areas, where sellers don’t need to lower prices as much to find buyers.

  1. Vernon, Texas
  2. Total share of listings with price cuts: 4.8%
  3. For sale inventory: 53
  4. Average home value: $101,793
  5. 1-year value change: 13.7%

  6. Median days to pending: N/A

  7. Magnolia, Ark.

  8. Total share of listings with price cuts: 10.1%
  9. For sale inventory: 73
  10. Average home value: $146,700
  11. 1-year value change: -3.7%

  12. Median days to pending: N/A

  13. Selma, Ala.

  14. Total share of listings with price cuts: 10.37%
  15. For sale inventory: 80
  16. Average home value: $72,166
  17. 1-year value change: -8.6%

  18. Median days to pending: N/A

  19. Appleton, Wis.

  20. Total share of listings with price cuts: 10.46%
  21. For sale inventory: 272
  22. Average home value: $294,178
  23. 1-year value change: +7.1%

  24. Median days to pending: 34

  25. Zapata, Texas

  26. Total share of listings with price cuts: 11.3%
  27. For sale inventory: 40
  28. Average home value: $138,195
  29. 1-year value change: -9.8%

  30. Median days to pending: N/A

  31. Cordele, Ga.

  32. Total share of listings with price cuts: 11.45%
  33. For sale inventory: 90
  34. Average home value: $134,805
  35. 1-year value change: -5.4%

  36. Median days to pending: N/A

  37. Beaver Dam, Wis.

  38. Total share of listings with price cuts: 11.8%
  39. For sale inventory: 66
  40. Average home value: $287,676
  41. 1-year value change: +6.4%

  42. Median days to pending: N/A

  43. Watertown, Wis.

  44. Total share of listings with price cuts: 12.07%
  45. For sale inventory: 64
  46. Average home value: $315,284
  47. 1-year value change: +5.9%

  48. Median days to pending: N/A

  49. Oshkosh, Wis.

  50. Total share of listings with price cuts: 12.16%
  51. For sale inventory: 252
  52. Average home value: $251,421
  53. 1-year value change: +5.2%

  54. Median days to pending: N/A

  55. Eagle Pass, Texas

  56. Total share of listings with price cuts: 12.18%
  57. For sale inventory: 216
  58. Average home value: $228,414
  59. 1-year value change: +4.9%
  60. Median days to pending: N/A

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