Home Sellers Cut Prices as US Housing Market Stalls

Home sellers across the United States are lowering asking prices and offering financial concessions to attract buyers as high mortgage rates, years of rising property values and persistent inflation weigh on housing demand. The slowdown is leaving many homeowners unable to sell promptly, delaying moves tied to employment, family needs and other major life decisions, according to The Associated Press.

Sellers now face a market in which available homes outnumber buyers. Some homeowners are withdrawing listings until conditions improve, while others are reducing prices or paying thousands of dollars toward buyers' expenses to complete transactions.

The shift reverses conditions earlier in the decade, when exceptionally low mortgage rates helped fuel intense competition and pushed many homes to sell above their asking prices. Higher borrowing costs and concerns about the economic outlook have since made homeownership less affordable, prompting some prospective buyers to postpone purchases.

Mark Fleming, chief economist at First American Financial, described the changing balance between buyers and sellers.

"The dynamic has shifted back toward more of what we call buyers' markets rather than sellers' markets," said Mark Fleming, chief economist at First American Financial.

Fleming said sellers increasingly need to adjust their expectations to close deals, including accepting lower offers, providing concessions or allowing properties to remain listed longer.

"(That) means you might have to reduce your price, you might give a concession to get your home sold, it might have to stay on market longer," said Mark Fleming, chief economist at First American Financial.

Rising mortgage rates and the cumulative effect of years of home price increases have narrowed the pool of buyers able or willing to purchase properties. Some prospective homeowners are waiting for more favorable conditions, potentially during the spring buying season, while sellers must decide whether to accept lower offers or delay their plans.

Liz Suder, a 56-year-old finance director in Murphy, Texas, experienced those pressures firsthand while trying to downsize after her three children moved out. She had owned her four-bedroom, 3.5-bath home for 21 years and wanted to sell it before purchasing a smaller property.

Suder said she wanted to avoid carrying two home loans while searching for her next residence.

"I was waiting to sell the house before I started looking," said Suder, 56. "I didn't want to have two mortgages."

She initially listed the house in April 2025 for $750,000. After six months without a buyer, despite several price reductions, she removed the property from the market.

Suder relisted the home in February for $725,000 ahead of the spring homebuying season. The property eventually attracted a buyer willing to pay $650,000, more than a year after the original listing.

To help finalize the sale, Suder agreed to contribute $9,000 toward repairs. The transaction illustrates the additional price reductions and seller-funded expenses that have become necessary for some homeowners trying to complete a sale in the slower market.