Home Sellers Cutting Prices in 38 of 50 Largest U.S. Cities

A notable shift in bargaining power is playing out across America's largest housing markets. In 38 of the 50 biggest U.S. cities, home sellers are now accepting offers below their listed asking prices — a sign that the post-pandemic seller's market is continuing to soften under the weight of persistently high mortgage rates.

The dynamic reflects a fundamental squeeze on buyer budgets. As borrowing costs remain elevated, the pool of households that can qualify for — and comfortably service — a mortgage on a median-priced home has narrowed considerably. Sellers who priced optimistically are increasingly discovering that the market will not support their expectations, prompting downward negotiation at the closing table.

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What makes this moment analytically significant is that price softness is appearing even in cities that were once considered impervious to correction. The breadth of the trend — spanning 76 percent of the country's largest metros — suggests this is less a local story and more a structural response to the higher-rate environment the Federal Reserve engineered to combat inflation. Demand has not collapsed, but it has been recalibrated.

For prospective buyers who can still afford to enter the market, the data carries a practical implication: negotiating room now exists in places where it simply did not two or three years ago. Yet affordability remains the central obstacle. The ability to extract a below-asking deal matters little if the monthly payment on even a discounted home strains a household's finances beyond comfort.

The broader housing picture remains one of constrained supply meeting constrained demand — a standoff that keeps outright price crashes unlikely while also limiting any swift rebound in transaction volume. Continue reading at CNBC.