Price Reductions Reach a Multi-Year High

The share of active home listings with a price reduction rose to 20.8 percent in September, up 0.9 percentage points from a year earlier and the highest September reading since 2018, according to the Realtor.com September 2026 Monthly Housing Trends Report released September 30 [1](https://www.prnewswire.com/news-releases/price-cuts-reach-yearly-high-as-inventory-nears-pre-pandemic-levels-realtorcom-september-housing-report-302893453.html). Active inventory grew 5.4 percent year over year to more than 1,161,000 homes, narrowing the gap to typical pre-pandemic inventory levels to 9.1 percent, the first time that gap has fallen below 10 percent during the current market recovery.

At the same time, the stock of homes under contract declined 4.1 percent year over year, marking a second consecutive monthly decline and the steepest annual drop since March 2025. The median listing price fell to 419,250 dollars, down 1.2 percent from August and down 1.4 percent from September 2025.

Rates as the Limiting Factor

Realtor.com chief economist Danielle Hale said in the report that September's data shows buyers gaining leverage, but higher mortgage rates are limiting how much of that opportunity they can use, since rising financing costs continue to constrain how much buying power that added inventory translates into actual transactions. Realtor.com senior economist Jake Krimmel noted separately that mortgage rates rose nearly 40 basis points over the four weeks ending in late September, and more than a full percentage point since a conflict in Iran that began in late February, as reported by Fox Business [2](https://www.foxbusiness.com/economy/more-homes-more-price-cuts-but-buyers-still-arent-biting-mortgage-rates-climb).

Krimmel added that the year-over-year comparison has worsened quickly: after running below 2025 levels through July, rates are now more than 70 basis points above where they stood a year earlier, a gap that widened because rates were falling last September while they are rising this year.

What the Inventory Gap Means

Narrowing the inventory gap to pre-pandemic norms to 9.1 percent represents measurable progress toward a more balanced market after years of persistently tight supply following the run-up in home values and mortgage rates since 2022. That narrowing has come primarily through growth in new and active listings rather than through a surge in sales, since pending contracts have moved in the opposite direction.

For sellers, a 20.8 percent price-cut share signals that list prices have, in many cases, outpaced what buyers are willing or able to pay given current financing costs, forcing adjustments after initial listing. For buyers, more inventory paired with more frequent price reductions creates room to negotiate, though higher monthly payments at prevailing mortgage rates still constrain how much home many shoppers can afford.

A Seasonal Window, With Caveats

Realtor.com's report points to a late September through early October window, specifically September 27 through October 3, as a historically favorable period for buyers based on past seasonal patterns of reduced competition. That seasonal framing describes typical past behavior rather than a guarantee for any individual buyer in the current market.

Because the report is a monthly snapshot, subsequent months will show whether the inventory build and pending-sales decline persist or reverse as mortgage rates evolve. Buyers and sellers should treat the report's national figures as a backdrop rather than a substitute for local market data, since price-cut shares and inventory levels vary significantly by metro area.