Amid the pressure of high mortgage rates and economic uncertainty, the real estate market in the United States continues to cool down. Sellers who set prices too high risk paying the cost in terms of time and money. According to data from the National Association of Realtors (NAR) as of October, about 57% of homes sold this year had undergone at least one price reduction, surpassing the average of around 47% between 2020 and 2024.
Experts point out that many sellers still hold on to the mentality from the pandemic period, where they saw neighbors’ houses selling quickly at high prices and now hope to sell for even higher prices, but end up stagnating the property market. Jessica Lautz, Deputy Chief Economist at NAR, suggests that homeowners should price their properties based on the actual selling prices of similar homes in the same area in the past one or two months, rather than basing it on earlier peak market prices.
Data from Realtor.com shows that in October 2025, over 20% of listed homes had reduced their prices, doubling the rate compared to the pandemic period and exceeding levels from the past two years.
NAR data indicates that homes that have undergone price reductions typically take about five times longer to sell than those originally priced reasonably. Conversely, homes priced reasonably from the beginning tend to sell faster and may ultimately sell closer to the original asking price. Statistics show that after three months on the market, sellers on average reduce prices by over 5%; if a home remains unsold after a year, price reductions may exceed 12%.
For buyers, homes that have been on the market for a long time provide them with more negotiating room. Joel Berner, Senior Economist at Realtor.com, states that compared to the seller’s market frenzy of 2021-2022, buyers now have more time and leverage to negotiate, offer prices below the asking price, and request home inspections again.
According to NAR statistics, data on transactions up to October 2025 show that homes that experienced price reductions this year sold on average 3.7% lower than the initial asking price.
Some sellers are hesitant to make significant price reductions and opt to withdraw their homes from the market, waiting for a better opportunity to relist. However, research indicates that they often face even larger price reductions later on.
According to surveys by research consultancy firm John Burns Research and Consulting and real estate sales company Keeping Current Matters, in markets with high inventory levels such as Florida and Texas, the frequency of homes being taken off the market is noticeably higher than normal; but in regions like the Midwest and Northeast where housing inventory is scarce, the withdrawal rates remain low.
Experts emphasize that in a market with high rates and weakened demand, accurate pricing is becoming increasingly important. If sellers fail to adjust their expectations with the market, they may not only prolong the sales cycle but also face multiple price reductions, leading to a final selling price that may be less satisfactory.