Sellers Cut Prices at Record Levels as Housing Market Moves in Buyers’ Favor

After several years of record-setting price increases, the housing market set a different kind of record: the steepest price discounts we’ve seen in at least eight years, according to a Zillow analysis of October 2025 data.

The record price cuts amounted to $25,000 on a typical U.S. listing, and provided one more sign that the housing market continues to move in buyers’ favor. The typical discount measured in October is cumulative, meaning that sellers have been making multiple cuts to attract buyers, especially in markets where inventory has surged and homes are taking longer to sell.

In the month following these exceptionally high discounts, the share of price cuts nationally had dropped down from more than 1 in 4 to about 1 in 5 homes — a more typical level for the season. The likely reason, according to Zillow economists: sellers who didn’t find buyers opted to unlist their homes and wait until the busy spring selling season, when buyers tend to turn out in droves.

Still, the winter season presents opportunities for deal-making as there’s likely to be less competition among buyers and a greater number of homes that have been on the market for a while.

What the price cuts tell us

The cuts are a sign that sellers are willing to part with some of the gains they’ve enjoyed since home values took off during the pandemic.

“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,” said Zillow Senior Economist Kara Ng. “These discounts are bringing more listings in line with buyers’ budgets.”

The combination of price cuts, lower mortgage interest rates and flat or declining home values in many markets helped make homes the most affordable they’ve been in three years.

For buyers and sellers currently in the market, the discounts may underscore the need to adjust buying and selling strategies as the market rebalances in favor of buyers. With that, here’s where we’re seeing the biggest discounts.

Metros with the biggest price cuts 

As with all things real estate, the story varies among local markets. The typical price cut on listings continues to hover near $10,000, but multiple reductions are becoming more common as homes take longer to sell, according to the analysis.

In terms of dollars, the nation’s pricey coastal markets saw the biggest price cuts, led by  San Jose ($70,900), Los Angeles ($61,000), San Francisco ($59,001), San Diego ($50,000) and the New York metro area ($50,000).

In percentage terms, the discounts represent a larger share of the price in more affordable markets like Pittsburgh and New Orleans, where a typical markdown of $20,000 represents about 9% of the typical home value.

Sellers in metros where homes are selling more quickly haven’t cut prices as much. For instance, in Oklahoma City and Louisville, the typical price cut in October was $15,000. 

10 markets with the biggest discounts relative to home values

15 markets with the largest total price cuts

Sellers continue to cut prices to attract buyers. This chart shows metros where sellers have cut the most on a cumulative basis. (Median represents the mid-point, with half of cuts amounting to more and half amounting to less.)

15 markets with the largest price cuts in October alone

October marks the start of the slow season in real estate. This year, it also coincided with conditions that continue to favor buyers in most of the nation’s largest metros. (Median represents the mid-point, with half of cuts amounting to more and half amounting to less.)

15 markets where price cuts represent the biggest share of home values 

While price cuts may be smaller in these markets, they represent larger savings in terms of a percentage of home values. 

Takeaways

For buyers: Price cuts are a sign that sellers are recalibrating their expectations, and are more willing to make a deal to sell their homes. Work with an agent who is an expert in your local market to craft a strategy that reflects local conditions. And stay on top of how much you can afford with BuyAbility^SM, a Zillow tool that estimates how much you can afford to spend on a home given your personal financial situation and current mortgage interest rates. 

Find homes in your budget with BuyAbility℠

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For sellers: Stay informed, especially if you’re in a market where other sellers continue to adjust prices to attract buyers. An experienced agent who is an expert in your market can help you craft a pricing strategy that reflects the dynamics of your market.

Disclaimer: This article includes forward-looking statements based on current expectations and assumptions about housing market conditions, which are subject to change, and actual outcomes may differ materially due to economic, market, and other factors.