Top 10 U.S. Cities with Home Price Reductions in 2024

As the U.S. housing market continues to evolve, homebuyers are seeing more opportunities for price reductions across several major cities. In particular, recent data reveals significant home price reductions in 10 cities, where sellers are offering discounts of 25% or more. This shift is a result of changing market conditions and a response to a higher inventory of homes for sale.

In this article, we will explore the top cities with home price reductions, shedding light on the key statistics and trends that are shaping the market today.

The Impact of Price Reductions

Home price reductions have become more common as sellers adjust to increased competition. A notable factor driving these reductions is the moderate decrease in mortgage interest rates, which, as of mid-September 2024, fell to around 6.2%. Although rates have since edged up, the temporary dip resulted in a surge of home listings, prompting sellers to lower their prices to attract buyers. According to a report from Realtor.com, the overall share of homes with price reductions rose by 0.9 percentage points compared to last year, signaling a favorable shift for buyers.

Top 10 Cities with Home Price Reductions

Phoenix, AZ

• Median list price: $532,000
• Percentage of listings with price reductions: 25%
• Year-over-year increase in price reductions: 1.4%
  Phoenix leads the list with 25% of home listings experiencing price reductions. Buyers can find attractive deals in this competitive market, with reductions offering significant savings.

Austin, TX

• Median list price: $556,000
• Percentage of listings with price reductions: 25%
• Year-over-year increase in price reductions: 8.8%
  Austin’s housing market has seen a substantial 8.8% rise in price reductions, offering opportunities for homebuyers looking for a deal in one of Texas’s most desirable cities.

Denver, CO

• Median list price: $649,000
• Percentage of listings with price reductions: 25.2%
• Year-over-year increase in price reductions: 1.6%
  The Denver market remains competitive, with 25.2% of homes on the market having reduced prices. The combination of a high median list price and available reductions makes Denver an attractive option for buyers.

Virginia Beach, VA

• Median list price: $649,000
• Percentage of listings with price reductions: 25.9%
• Year-over-year increase in price reductions: 4.7%
  Virginia Beach sees nearly 26% of homes reducing prices, with year-over-year increases, offering buyers a wide array of options at more affordable prices.

Washington, DC

• Median list price: $599,948
• Percentage of listings with price reductions: 25.9%
• Year-over-year increase in price reductions: -0.2%
  While Washington, DC, has maintained a steady reduction rate, there has been a slight decrease in year-over-year reductions. Nonetheless, a significant portion of the market offers lower prices.

Miami, FL

• Median list price: $525,000
• Percentage of listings with price reductions: 26.2%
• Year-over-year increase in price reductions: 3.5%
  Miami’s real estate market remains competitive, with over 26% of listings having reduced prices. This dynamic, coupled with year-over-year increases in reductions, offers buyers considerable leverage.

Minneapolis, MN

• Median list price: $432,500
• Percentage of listings with price reductions: 26.4%
• Year-over-year increase in price reductions: 0.4%
  Minneapolis stands out with a high percentage of listings offering price reductions, providing buyers with access to discounted homes in a sought-after Midwestern market.

San Francisco, CA

• Median list price: $997,500
• Percentage of listings with price reductions: 27.4%
• Year-over-year increase in price reductions: 1.2%
  Known for its high home prices, San Francisco has also seen a significant portion of listings slashing prices. With a median list price close to $1 million, price reductions offer substantial savings for buyers.

Riverside, CA

• Median list price: $599,000
• Percentage of listings with price reductions: 28.1%
• Year-over-year increase in price reductions: 0.6%
  Riverside offers a combination of relatively affordable housing and a high rate of price reductions, making it a competitive market for homebuyers.

San Jose, CA

• Median list price: $1,432,170
• Percentage of listings with price reductions: 28.2%
• Year-over-year increase in price reductions: 0.4%
  Topping the list in terms of both price and reduction percentage, San Jose offers buyers some of the highest price reductions in the country, making it a key city to watch for homebuyers looking for luxury deals.

What This Means for Buyers

These cities with home price reductions reflect a growing trend in the U.S. housing market. As more sellers reduce prices to compete with an influx of new listings, buyers are in a better position to negotiate and find deals. This shift is beneficial for both first-time homebuyers and those looking to upgrade to larger homes. In addition to potential price cuts, buyers may also have leverage in negotiations for concessions such as closing costs or repairs.

The data from Realtor.com clearly shows that the percentage of homes with price reductions is rising, especially in regions like the West and Northeast. With many cities now offering discounts, buyers have a broader range of options, especially in cities like Phoenix, Austin, and San Francisco.

As the housing market adjusts to new economic conditions, buyers in the top 10 cities with home price reductions can take advantage of discounted prices, making homeownership more attainable. Whether you are looking in Phoenix, San Francisco, or Washington, D.C., these reductions signal new opportunities for those ready to enter the market.