House prices drop- 3 cities in California have the most price cuts

In a recent interview, we explored the latest trends in the housing market, particularly focusing on cities with the highest percentage of price reductions as reported by Realtor.com. According to their September housing market report, there has been a notable increase in the number of homes available for sale across the United States, prompting some sellers to lower their asking prices.

The report highlights a decrease in the median home price from $429,990 in August to $425,000 in September, which represents a nearly $5,000 drop within just one month. Additionally, the percentage of homes with price reductions has risen by 0.9% compared to the same period last year.

Senior Economist Ralph McLaughlin at Realtor.com pointed out that the proportion of homes experiencing price cuts in September rose from 17.7% last year to 18.6% this year. Even more striking is that when compared to September from 2017 to 2019, this year’s price reduction rate is up by a full percentage point.

The report also indicates that the number of homes for sale in September increased by 34% year-over-year, providing buyers with more options. McLaughlin mentioned that these price reductions signal that homes are not selling as quickly as sellers had anticipated, resulting in lower prices to attract potential buyers.

Notably, the report reveals that three cities in California have the highest rates of price reductions: San Francisco, with a median listing price of $997,500; Riverside, at $599,000; and San Jose, with a median of $1,432,170.

Beyond California, Phoenix, Arizona leads the nation with the highest percentage of price cuts, where the median listing price is $532,000, followed closely by Austin, Texas at $556,000 and Denver, Colorado at $649,000.