Home Buyers Score Big Discounts in Major Cities
Summary:
Home shoppers in major U.S. cities are seeing some of the largest discounts in recent years, according to a Zillow report. The most significant price cuts are occurring in metros like Pittsburgh, New Orleans, and Austin, Texas, with typical discounts reaching $25,000. As housing inventory grows, prospective buyers are finding improved conditions, especially in high-cost markets where sellers are reducing prices multiple times before closing. Mortgage rates in the low-6% range are also making home purchases slightly more manageable, providing opportunities for patient buyers to secure deals.
What This Means for You:
- Look for properties that have been on the market for extended periods, as sellers are more likely to offer discounts.
- Prioritize your search in metros like San Jose, Los Angeles, and Austin, where the largest median price cuts are happening.
- Calculate affordability relative to home values; smaller cuts in more affordable cities like Pittsburgh may offer better value.
- Be cautious about future market shifts; while discounts are significant now, inventory and interest rates could change quickly.
Original Post:
Home shoppers in major cities are finding some of the largest discounts in recent years, with the most significant price cuts in metros like Pittsburgh, New Orleans and Austin, Texas, according to Zillow.
In a new report released Monday, the online real estate marketplace said typical discounts added up to $25,000 in October, “matching the biggest discounts Zillow has tracked.” The report states that home sellers are often dropping prices multiple times before a sale.
As housing inventory continues to grow, driving more price cuts, there is “a sliver of an opening” for prospective buyers who are finally seeing improved conditions in some major U.S. cities, the report says.
Mortgage rates in the low-6% range are making costs slightly more manageable compared to the past two fall seasons. Zillow suggests that “patient” shoppers can potentially find a good deal on a home purchase when sellers cut prices on homes that have lingered on the market.
The smallest median home price discounts are mainly found in more affordable metros with a solid pace of home sales. Oklahoma City (-$15,000), Louisville, Kentucky (-$15,000) and St. Louis (-$15,100) topped that list. But where are the largest price cuts?
10 metros where sellers are offering huge home price cuts
Of the 50 largest metro statistical areas, or MSAs, these are the cities with the largest median price cuts in October, according to Zillow:
- San Jose, California: -$70,900
- Los Angeles: -$61,000
- San Francisco: -$59,001
- New York: -$50,000
- San Diego: -$50,000
- Boston: -$49,900
- Seattle: -$41,000
- Austin, Texas: -$36,000
- Portland, Oregon: -$31,901
- Sacramento, California: -$30,900
It’s not surprising that many of the most expensive markets are at the top of this list. In San Jose, which ranks first, the typical sale price is over $1.3 million, which is nearly four times the typical U.S. home price, according to Zillow data. By nature, home price cuts will often be larger in such an expensive city.
In more affordable housing markets, “smaller cuts can represent a bigger relative discount for buyers,” Zillow explains in the report. For example, the median price cut of $70,900 in San Jose is only around 5% of the typical home value.
In other words, when you consider the context of home prices, those pricey West Coast and Northeast markets no longer dominate the list.
Relative to home values, these are the five markets with the largest discounts in October:
- Pittsburgh (about -9% of the typical home value)
- New Orleans (-9%)
- Austin, Texas (-8.4%)
- Houston (-8.2%)
- San Antonio (-7.9%)
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Extra Information:
For more insights on current mortgage rates and how they impact affordability, visit Money’s Mortgage Rates Guide. To explore housing inventory trends, check out this detailed analysis.
People Also Ask About:
- What cities have the biggest home price cuts? San Jose, Los Angeles, and San Francisco top the list with median discounts of $70,900, $61,000, and $59,001, respectively.
- How do mortgage rates affect home buying? Lower mortgage rates, like the current low-6% range, make monthly payments more affordable for buyers.
- Are discounts larger in expensive cities? Yes, but relative discounts may be more significant in affordable markets like Pittsburgh and New Orleans.
- Should I buy a home now? If you’re patient and strategic, current discounts and inventory levels can help you find a good deal.
Expert Opinion:
According to real estate experts, the current wave of home price discounts reflects a temporary market adjustment driven by increased inventory and stabilizing mortgage rates. Buyers should act cautiously but decisively to capitalize on these conditions before potential shifts in the housing landscape.
Key Terms:
- Home price discounts 2025
- Buying a house in major cities
- Mortgage rate trends
- Real estate market inventory
- Affordable housing markets
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