Housing Market Sees Increased Price Cuts as Inventory Grows Closer to Pre-Pandemic Levels
The U.S. housing market is experiencing increased seller flexibility amid rising mortgage rates, according to the Realtor.com® September 2026 Monthly Housing Trends Report. The share of active listings with price reductions reached a yearly high at 20.8%, up from both August and last year's figures. Active inventory also rose by 5.4% compared to September 2025, narrowing the gap between current levels and pre-pandemic norms for the first time since early in the recovery period. Despite more homes being available, buyer activity has slowed due to higher borrowing costs. The stock of homes under contract dropped 4.1% year over year — marking a second consecutive monthly decline. Median listing prices fell slightly from August and continued an 11-month trend of annual declines. While inventory is improving in most regions, particularly the Northeast and Midwest, demand remains constrained by affordability issues. Realtor.com economists note that while more choices are available for buyers, higher mortgage rates continue to limit purchasing power. The report highlights a shift toward price adjustments rather than delistings as sellers adapt to market conditions.
Topics: housing market inventory levels mortgage rates price reductions