U.S. Home Price Cuts Hit Highest September Level Since 2018

U.S. home sellers increased price reductions in September 2026 to combat slipping demand as mortgage rates exceeded 7%. According to a report from Realtor.com, the share of listings with price cuts reached 20.8%, marking the highest September rate since 2018.

The trend is most pronounced in the West, where price cuts surged to 22.8%. Salt Lake City, Denver, and Portland recorded the highest metro-level discounts, with one-third of active listings in Salt Lake City receiving price reductions. In Denver and Salt Lake City, some sellers are pulling homes from the market entirely rather than accepting lower prices.

Real estate professionals indicate that these reductions have not significantly improved affordability. Rising interest rates, insurance costs, and general inflation continue to sideline buyers. Additionally, the Federal Reserve System reported a pickup in delinquencies as higher costs burden families and businesses.

Industry experts suggest the current environment is driven by interest rates and geopolitical uncertainty. Some sellers are forced to lower prices due to life events such as job relocations or debt, while others are attempting to catch up with a shifting market late.