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f you're on the hunt for a home and looking to snag a deal, you're in luck. In June 2025, several US housing markets are experiencing a trend where homes are selling below their original asking price. According to recent data, locations mainly found in the South and West offer buyers a chance to save.
Price reductions can indicate changing market dynamics and provide strategic options for savvy homebuyers. Several interconnected factors contribute to homes selling below their initial list price. Rising inventory is a major reason, particularly in the South and West, where the number of homes for sale has increased. Slower buyer demand also plays a role, often due to high interest rates or economic uncertainty.
Over-optimistic sellers who list their homes at prices too high for the current market are another factor. When these homes don't sell quickly, they're forced to lower the price. Realtor.com recently identified the top 10 metro areas where buyers are most likely to find homes with price reductions.
The top 10 markets include Denver, CO (33.7% of listings with price cuts), Phoenix, AZ (33.2%), Austin, TX (32.3%), and Tampa, FL (31.2%). These cities have seen a surge in inventory, slower buyer demand, or over-optimistic sellers.
In Denver, for example, the "Mile High City" has experienced a drop in median home prices compared to last year, with homes sitting on the market longer. Phoenix is also experiencing a cooling-off period after being a hot market during the pandemic. Austin's surge in popularity has led to increased construction and a significant boom in inventory.
Experts agree that supply is outpacing demand in these markets, forcing sellers to take less than they initially anticipated. The rise of interest rates may have caused a decrease in active buyers. For buyers, this means an opportunity to potentially buy a home for less than the original asking price.
However, it's essential to do your research, compare similar properties, and get a feel for what a fair price is. Negotiate wisely, considering making an offer below the reduced price if the home has been on the market for a while. Factor in closing costs, potential repairs, property taxes, and insurance when determining your budget.
For sellers, being realistic about pricing is crucial. Don't overprice your home based on what you think it's worth or what you need to get out of it. Price your home competitively from the start, and be prepared to negotiate. Consider staging your home to make it appealing to potential buyers and work with a knowledgeable real estate agent.
The current market trends won't last forever, and understanding the signals is key for both buyers and sellers. As interest rates decrease over time and buyer activity increases, price reductions are expected to slow down soon.
