The summer housing market is presenting an unexpected opportunity for prospective homeowners, as several key U.S. cities are experiencing significant price reductions, creating a distinct advantage for buyers. This shift signals a potential turning point for those looking to purchase a property without facing the intense competition and escalating costs seen in recent years.
Economists at Realtor.com meticulously analyzed June 2025 housing data from the nation’s largest metropolitan areas, identifying specific markets with the highest shares of for-sale homes that have undergone price cuts. This comprehensive study pinpoints the locales where buyers are most likely to find properties well below their initial asking price, offering a clearer picture of the evolving US housing landscape.
The findings reveal a clear geographical trend, with all identified areas located predominantly in the South or West. These regions have recently witnessed a notable surplus of homes on the market coupled with a subdued buyer’s market demand. According to Realtor.com senior economist Joel Berner, ‘Sellers in these markets are often listing their homes at prices higher than the market can bear, and being forced to adjust when they don’t sell as quickly as hoped for,’ underscoring the pressure on property owners.
Denver, Colorado, stands out as a prime example of this trend, with roughly one in three homes listed for sale in June experiencing mandatory price reductions. The city’s housing supply has surged by over 88 percent compared to the pre-pandemic era, yet real estate trends indicate that buyer demand remains exceptionally low, causing homes to linger on the market. This scenario is partly influenced by lingering expectations for mortgage rates to decrease, which has yet to materialize substantially.
Following closely, Phoenix, Arizona, recorded the second-highest share of home price cuts, with nearly a third of all listings adjusted downwards in June. Berner emphasizes that ‘Supply is outpacing demand in these markets, and sellers who don’t have the choice to delist because they have to move for life reasons are being forced to take less for their home than they anticipated.’ In June, the share of listings with price cuts hit 32.3 percent, with the average home listing price around $524,950, reflecting a 4.5 percent decrease from June 2024.
Other notable cities exhibiting similar housing market dynamics include Tampa, Florida, which ranked fourth with 31.2 percent of homes on the market seeing reduced prices, and an average home price of $419,000, down 1.4 percent from the previous year. Dallas, Texas, secured the fifth position, with 30 percent of its homes for sale experiencing price drops, averaging a 2.3 percent year-over-year decrease in June.
Housing economist Amy Nixon recently highlighted that as the surplus of current listings continues to grow, persistent high mortgage rates, a slowdown in domestic migration, and widespread tech layoffs are collectively contributing to an environment where home prices are increasingly likely to be slashed further. This convergence of factors suggests a sustained period of market correction in these specific areas, benefiting agile purchasers.
For astute buyers, especially those capable of all-cash purchases, these market conditions represent a significant opportunity to secure a deal and circumvent conventional mortgage concerns. Berner anticipates that ‘If mortgage rates fall, we expect buyer activity to pick back up and for price reductions to slow down,’ suggesting a window of opportunity that may not last indefinitely. This period offers a unique chance for strategic investments in a softening real estate environment.
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