Home sellers cutting prices at record pace

Making the cut

It seems home sellers are starting to get the message. 

The market has tilted in favor of the buyers, and prices are dropping at a rate we haven’t seen in a long time. In fact, the share of sellers cutting prices was the highest of any August on record.

We’ll give you the numbers below and show you where these trends are strongest and weakest.

Also, we would like to encourage you to listen to our latest episode of our podcast Rise Above the Ranks. We feel it’s an important one. 

While we love chasing deals, we’ve learned there are certain deals you shouldn’t chase. We give our advice on how to spot them. Scroll down to today’s Foundation Plans for a quick overview of what we discuss.

And on the subject of scrolling down… let’s get into today’s Blueprint!

- James and David

Home sellers cutting prices at record pace

In August, 16.7% of sellers reduced asking prices, the biggest share of any August on record, with homes typically selling 3.8% below list price, the steepest average discount since 2019. 

According to Redfin, high housing costs, rising inventory, and economic uncertainty have forced sellers to adjust expectations, tilting the market in buyers’ favor. Single-family homes are driving the trend, with price drops becoming more common in nearly every major U.S. metro. 

Here are the other takeaways from August:

• Sellers outnumber buyers – Sellers outnumbered buyers by 500,000, giving buyers leverage to demand deals and concessions.

• Single-Family Homes Hit Hardest – Nearly 1 in 5 single-family listings saw cuts, far higher than condos (12.8%) or townhomes (11.5%).

• Regional Trends – Price drops were highest in Denver (31.1%), Indianapolis (30.7%), and San Antonio (28.5%), and lowest in Newark (10.7%), New York (11.7%), and San Francisco (12.2%)

Our take

The surge in price cuts underscores how decisively the market has tilted toward buyers. Sellers who hold onto pandemic-era expectations risk falling behind, while those who price realistically from the outset are more likely to close a deal. For agents, this moment is about coaching sellers on smart pricing strategies and helping buyers zero in on listings that have lingered. That’s where the strongest negotiating power lies.

Luxury home sales hit weakest August on record

In August, the median luxury home prices rose 3.9% year-over-year to $1.25 million, nearly tripling the pace of non-luxury homes, though they remain below the all-time high set in March. Meanwhile, luxury home sales fell 0.7%, the lowest level since Redfin’s records began in 2013, mirroring the 0.6% drop in non-luxury sales.

Here are other key trends affecting the luxe space:

• Inventory climbed while demand lagged – Listings of luxury homes grew 9.5% to their highest August level since 2020, but sales stayed flat as buyers waited on the sidelines.

• Market speed slowed noticeably – The typical luxury home took 46 days to sell, three days longer than last year, while fewer homes went under contract within two weeks.

Our take

The luxury market is a mixed bag right now. Prices continue to climb, showing that wealthy buyers will still move when the right property comes along. But the slowdown in sales, combined with longer days on market, shows a shift in buyer’s attitudes. Even cash-heavy buyers are hesitant to make moves. For agents, that’s going to require some patience and sharper pricing strategies. Agents have to do more than sell homes, they have to sell confidence in an uncertain market.

Top 10 counties with largest increases in home prices

According to ATTOM’s Q3 2025 U.S. Home Affordability Report, housing affordability has continued to erode as prices push higher across most of the country. The national median home price hit a record $375,000 in the third quarter, up 4.8% from a year earlier, even as wages have grown at half the pace of home values since 2020. 

Nearly three-quarters of U.S. counties saw year-over-year price gains, with affordability slipping in almost half of the 580 counties analyzed. This surge underscores how quickly home prices are outpacing income growth, putting added strain on buyers nationwide.

Here are the top 10 counties with the largest annual percentage increases in median home prices in Q3 2025:

1. Jasper County, MO: 32.1%

2. Saint Louis County, MO: 28.2%

3. Tom Green County, TX: 26.8%

4. Kankakee County, IL: 24.6%

5. Jackson County, MI: 23.2%

6. Schuylkill County, PA: 23.1%

7. Fayette County, PA: 22.3%

8. Tompkins County, NY: 22.1%

9. Whitfield County, GA: 21.5%

10. Wichita County, TX: 21.3%

Our take

The latest numbers make it clear that affordability challenges aren’t confined to pricey coastal markets. They’re spreading deep into the Midwest, South, and Rust Belt. Counties in Missouri, Texas, and Pennsylvania posted some of the steepest year-over-year gains, highlighting how far home prices are outpacing wage growth nationwide. For buyers, the squeeze is real, but for sellers, these conditions can still fuel competitive demand, at least until affordability pressures start shutting more households out of the market entirely.

Schematics

The news that just missed the cut

• Zillow has four major lawsuits against it all at the same time 

• Rocket gains massive market share after closing on Mr. Cooper

• FICO to license scores directly to lenders, skipping credit bureaus

• The referral model is dying, and what comes next

• Why the Manhattan luxury housing market is booming

Foundation Plans

Advice from James and David to win the day

Every agent knows the thrill of chasing a big deal, but not all deals are created equal. Our latest episode of Rise Above the Ranks is about knowing when to walk away. Bad terms and one-sided contracts may promise fast money, but they often lead to stress, legal trouble, and lasting damage to your reputation. True top producers protect their credibility and say no when the deal doesn’t feel right. We don’t want you to get caught in a bad deal just because the numbers look good! 

Here’s a preview of what we cover in this important episode: 

1. Spot red flags in contracts – Just because a deal looks profitable doesn’t mean it’s safe. Unfair, one-sided terms can create serious legal and financial headaches down the road. Train yourself to identify red flags early, and don’t hesitate to walk away when the risks outweigh the rewards.

2. Protect your reputation at all costs – In real estate, your reputation is your most valuable currency. Compromising your ethics or cutting corners for a quick paycheck can lead to long-term damage. Clients and colleagues will respect you more when you consistently choose integrity over short-term gains.

3. Master the power of saying no – Top agents know that not every client or listing is worth taking. Saying no to a questionable deal clears space for bigger, better opportunities to come your way. This discipline not only reduces risk but also strengthens client trust and positions you for sustainable success.

4. Think long-term, not short-term – Walking away today can open the door to much greater opportunities tomorrow. Many agents have stories of passing on a bad deal only to land a far more lucrative one later. By prioritizing credibility and client relationships, you create a pipeline of business that compounds over time.

As we said, it’s an important topic and episode. Watch it here.

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

That’s a wrap on this edition of The Blueprint!

Remember: each day is a gift and a new opportunity to lead the life you want and to become the person you want to be. The mistakes and missteps you’ve made in the past don’t define you. Live as intentionally as you can and be ruthlessly focused on the goals you’ve set out to achieve. You can do it!

Thanks for reading, and we’ll see you back here on Tuesday!

- James and David