19 Places Where the Most Home Sellers Are Slashing Prices

Home for sale with price reduced — Rix Pix Photography / Shutterstock.com

Good news for homebuyers: Sellers are getting more aggressive about offering price concessions.

In January, 22.8% of sellers nationwide lowered the asking price for their home, according to Zillow. That is the highest share on record for any January since the real estate platform began tracking this data in 2018.

High mortgage rates have left many potential buyers struggling to afford a home, Zillow says. Now, sellers are trying to meet them halfway with price cuts, giving buyers more leverage than they have had in five years.

As a result, home sales are finally perking up. In a summary of the findings, Skylar Olsen, Zillow chief economist, says:

“Sellers are in a good position, and are willing to make price cuts to close a deal. Home equity is near record highs, and the general economy and financial markets are surprisingly strong. Homes are selling faster than they did before the pandemic.”

Here are the places where price cuts are especially common.

1. Phoenix, AZ

Phoenix, Arizona — Tim Roberts Photography / Shutterstock.com

Homes for sale in this market with a price drop in January: 33.5%

Zillow Home Value Index for this market: $448,824

At the beginning of the year, Trevor Halpern — CEO of Halpern Residential — told a local Phoenix TV station that sellers were offering more incentives to boost buyer demand in the city:

“Buyers have a little bit of negotiating power … when they’re negotiating on a purchase, and a lot of that comes down to incentives.”

2. Tampa, FL

Home in Tampa, Florida — Feng Cheng / Shutterstock.com

Homes for sale in this market with a price drop in January: 32.4%

Zillow Home Value Index for this market: $366,402

After years of soaring values, the market is now cooling in Tampa. Emma Pardo of Compass Real Estate recently told a local Tampa TV station:

“I think there’s more options for buyers; more options means more competition for sellers. So sellers have to be a little more realistic on pricing and take a lower price than what they are asking.”

3. Jacksonville, FL

Jacksonville, Florida — Sean Pavone / Shutterstock.com

Homes for sale in this market with a price drop in January: 30.8%

Zillow Home Value Index for this market: $349,746

Earlier this year, Howard Flaschen — a broker at Round Table Realty in St. Johns County — told a local Jacksonville TV station that homes priced at $500,000 or more were getting multiple offers.

However, that wasn’t true of more affordably priced homes:

“I’m seeing home prices below $350,000 struggling to find buyers. A lot of those buyers are relying on all of the things causing affordability issues, which is not just mortgage rates being close to 7%, but also homeowners insurance is higher.”