• 26.6% of for-sale listings cut their price in June. That’s the highest ever for June in Zillow data dating back to 2018. 
• Pandemic boomtowns like Raleigh, Nashville and Phoenix are among the nation’s leaders in price cuts. 
• Kansas City saw the sharpest jump in price cuts from May to June, rising five percentage points, followed by Buffalo (+3.9 pts), Indianapolis (+3.8 pts), Columbus (+3.3 pts), and Minneapolis (+3.2 pts). This can indicate a rapidly cooling market. 

After years of bidding wars, heartbreak, and sky-high prices, buyers may finally be getting a break. More than one in four home sellers cut their asking price in June, the highest share on record for this time of year in Zillow’s data. 

Nationally, 26.6% of active listings saw a price cut, up from 25.8% in May and 24.4% a year ago. More than a third of listings had their price slashed in markets like Raleigh, Nashville, Dallas and Phoenix — places that exploded during the pandemic, luring remote workers with open space, sunshine, and relatively affordable prices. 

While affordability is keeping many buyers on the sidelines in some markets, other markets are seeing slowing growth in their local workforce. This is the group most likely to also enter the housing market as potential home buyers, and so demand in those markets is lessening, too.

The Facts

Denver leads the nation in price cuts, with 38.3% of listings seeing a price reduction in June. Raleigh follows at 36.4%, with Dallas (35.5%), Nashville (35.5%), and Phoenix (35.5%) close behind. 

Most of these markets saw explosive growth during the pandemic housing boom. Now, they are rebalancing as population growth slows and some buyers bump up against affordability ceilings. Nationwide, inventory is still 20.6% below pre-pandemic norms, but it’s already surpassed those levels in the five metros above, except Phoenix, which is just 2% below. 

On the opposite end, price cuts remain rare in markets like Milwaukee (13.9% of listings with a price cut in June), New York (15.6%), Hartford (16.0%), Buffalo (18.3%), and San Jose (22.1%). In these areas, tight inventory — both existing homes and new construction — is keeping sellers in the driver’s seat. 

Some metros saw especially sharp month-over-month increases in price cuts. Kansas City led the nation, jumping five percentage points, followed by Buffalo (+3.9 pts), Indianapolis (+3.8 pts), Columbus (+3.3 pts), and Minneapolis (+3.2 pts). A sharp increase in price cuts often indicates a rapidly cooling market. 

Buyer Impact

Buyers are moving closer to the driver’s seat as inventory climbs. In many markets, this is the first sign of meaningful negotiating power in years. 

Buyers should expect fewer bidding wars, more listings to tour and more time to consider their options. Seller concessions like rate buydowns may also be back on the table in some especially cool markets. 

Seller Impact

As the market rebalances, the days of never-ending lines at open houses are gone. Sellers are adjusting to this new reality and competing with each other as they try to elbow their way to the front of the line. Pricing and marketing a home well becomes even more important with fewer buyers in the market. 

Looking Ahead

Expect more price cuts ahead. Zillow’s forecast for home values and mortgage rates calls for some affordability improvements by the end of the year, but not enough to move the needle for most prospective buyers.