After a year of high interest rates and slow sales, home sellers are finally facing the music this summer — and thinking about home prices.
According to the Realtor.com® economics team, last year was a “cruel summer” marked by excess inventory, weak sales and a general feeling that buyers and sellers were failing to meet expectations.
Now, a year later, sellers have begun to adjust their expectations and lower their original asking prices rather than buck the market slowdown.
In July, the average list price was down 2.4% year-over-year. Additionally, less than 40% of active listings saw a price reduction, compared to 54% of listings in July 2025 – a sign that sellers have started to price homes more competitively from the start.
“Last year, sellers were still pricing for the market they remembered, rather than what buyers actually faced,” says Realtor.com’s senior economist Jake Krimmel. “This summer they were more realistic from day one – and more willing to adapt when necessary.”
The share of active inventory considered “for sale” or discounted fell in all 50 largest metro areas between July 2025 and July 2026.
When price reductions are necessary, sellers implement their first price reduction three to four days earlier than last year – on average 34 days later than 38 days later – with price reductions on average at least one percentage point smaller across all regions.
“That’s good news for buyers, who see lower asking prices and more room to negotiate, but it’s also good news for sellers: Pricing that aligns with today’s demand makes it easier to move homes and keeps more transactions alive in a high-rate environment,” says Krimmel.
As sellers meet buyers closer to the realities of the market, the “churn rate” — the number of sellers removing their homes from the listing in frustration — has dropped. In June and July 2026, national delistings were 8.3% and 4.7% below 2025 levels, respectively, although some metropolitan areas saw increases, including San Jose, California; Dallas; and Miami.
Last May through July saw the highest number of home contracts since 2022. Overall, home sales are still about 9% below pre-pandemic levels, but contract signings are up about 2% year-over-year and 4% since 2023. Progress has been slow, steady and consistent across all regions.
Greg FieldA solar home real estate agent with Home Smart in Tempe, AZ, says he’s experienced a sea change in the past year.
“There was a game of chicken in 2025,” he says. “The sellers remained stubborn, holding on to the phantom capital of pandemic profits and waiting for the offers – and they never came. This year the game is over.”
The market continues to correct its course
You could call it the great realignment. Last year, sellers stubbornly clung to the idea that they could set prices at the same level as when interest rates were at 3%.
But with interest rates consistently above 6%, they had to face facts.
“When we sit today, sellers are more realistic,” he says Scott Payne, Executive Vice President and Managing Broker at Atlanta Fine Homes Sotheby’s International Realty. “The clearest evidence isn’t what they say; it’s the ever-narrowing gap between list price and sales price that we’ve seen this summer. When that range narrows, it means sellers are starting closer to the actual market position, rather than testing a number and working their way back down.”
Jessica Wu is the principal broker at JW Real Estate Services in Boston.
“In the Boston area, I’m seeing more sellers coming to the market this year, while overall buyer activity feels slower. Open houses are still happening, but turnout is low,” she says.
Wu says she works with more vendors these days than in previous years. “I used to work with more buyers than sellers, and this year that’s reversed, a sign of rising inventory levels and more competition among sellers. I would characterize the current behavior of sellers as pragmatic, divided, and patient: sellers who need to sell adjust to what buyers are actually willing to pay, and sellers who aren’t willing to pay stand firm.”
How sellers can make the most of the market
Sellers looking to stand out in the market should be aware of what the current market has to offer, says Field.
“Concessions that would have angered a seller two years ago are becoming a standard part of the deal,” he says.
It used to be common in some competitive markets to sell for 10% more than comparable homes, but that is no longer the case.
“If you try to list this way, your offer will stay up for 60 days. Sellers will get real and move closer to the strike price from day one,” he says.
Rachel Kilmer, A real estate agent with ReeceNichols in Kansas City, MO, says smart sellers are actually undervaluing the market somewhat.
“They’re the ones who win and actually make more money, which seems counterintuitive. But if you price just below all of your competitors in your neighborhood, your home will be the one that sells first and is the most marketable,” she says. “So you’re getting a nice, strong list price offer, while all your neighbors are the ones who are allowing the days on market to add up, increasing the likelihood that they’ll have to lower their price.”
She says many salespeople are “unrealistic” about their influence.
“I’ve seen sellers turn down contracts that were slightly below list price and that had been on the market for 60 days or more. And if those are my sellers and I’m representing them, I inform them of the data that shows that the longer you’re on the market, the less likely you are to get full price. And I think that’s more true now than it has been in a long time.”
“Strategy is more important than price, and a successful strategy is to either start with the right price based on competitive advantages or plan for a price drop to make buyers feel like they are getting a deal,” he says Mitch ColuzziConstruction manager at the real estate investment company SoldFast. “In fact, getting too high can create a perception problem for sellers that even a price drop won’t solve.”
Field advises sellers to think about how they can meaningfully improve a buyer’s bottom line, such as offering a mortgage interest buyback – but buyers should weigh the pros and cons of such a move.
“Lowering the price by $20,000 won’t significantly lower the buyer’s monthly payment. But paying $10,000 for the 2:1 rate buydown will lower it significantly,” says Field.
Regardless of the strategy used, Payne recommends sellers focus on pricing their home correctly the first time.
“Aspirational pricing is a very expensive strategy,” he says. “By the time you get to the actual market price, you have attracted the attention that comes with being new to the market, and you rarely get it back.”
