Twenty percent of active listings carried a price reduction in July 2026, up 1.2 percentage points from June, while pending sales rose 1.3% year over year, extending their growth streak to eight consecutive months, according to Realtor.com’s July 2026 Monthly Housing Trends Report released on August 3. The national median list price stood at $428,950 in July, essentially flat month over month but down 2.4% year over year, marking the ninth consecutive month of annual price declines.
“July’s data show a market that is cooling seasonally, not coming apart,” said Danielle Hale, chief economist at Realtor.com. The combination of falling asking prices and rising price reductions signals that sellers are working harder to attract buyers as summer demand cools, while contract signings remain ahead of last year’s pace—a sign that affordability-conscious buyers are responding to more realistic pricing.
The data paint a picture of a housing market in transition: not collapsing, but recalibrating. For buyers who’ve been waiting on the sidelines, the growing share of price cuts and moderating list prices may represent the opening they’ve been looking for.
The numbers
Price cuts reach highest share since last summer
Sellers are adjusting expectations as inventory builds and buyers take their time.
Sellers reduced prices on 20.0% of active listings in July, up 1.2 percentage points from June and down just 0.6 percentage points from a year earlier. That year-over-year gap narrowed sharply from June, when the share was 1.9 percentage points below the prior year, signaling that price reductions are now catching up to 2025 levels.
Regional differences remain stark. Price cuts remain least common in the Northeast, at 13.7% of listings, and the Midwest, at 18.7%, yet both regions are now running above their year-ago rates. By contrast, the South, at 21.3%, and the West, at 21.9%, each remain below last year’s levels. Among the 50 largest metro areas, price reductions were least common in Hartford at 9.0%, New York at 9.7%, and Buffalo at 10.5%, and most common in Portland at 31.0%, Denver at 30.9%, and Dallas at 28.3%.
The median home spent 57 days on market in July, four days longer than in June but one day less than a year ago, marking the first outright annual decline after 26 consecutive months in which homes took longer to sell than the year before. The July pace matches the pre-pandemic norm for the month.
Key figures from July 2026
20.0% of active listings had a price reduction, up from 18.8% in June
$428,950 national median list price, down 2.4% year over year
1.3% year-over-year increase in pending sales, the eighth straight monthly gain
57 days median time on market, one day faster than July 2025
1,126,252 active listings nationwide, up 2.1% year over year but still 11.6% below 2017–2019 levels
Buyer demand
Pending sales slow but stay positive
Contract signings rose for an eighth month, though momentum has cooled since spring.
Pending sales increased 1.3% year over year in July, extending their growth streak to eight months, though momentum has slowed from 4.1% in May and 3.7% in June. The eight-month stretch of year-over-year pending-sales growth is the longest such run since November 2020 through June 2021, a period when the pandemic housing boom was in full swing.
The deceleration raises an important question: is this a normal seasonal cooldown, or the beginning of a more significant pullback? “In July, homes are not sitting longer than they did a year ago and pending sales are still positive, which argues for a normal seasonal cooldown,” said Jake Krimmel, senior economist at Realtor.com. “But price cuts are moving closer to last year’s pace, so August will be important: if cuts accelerate while pending sales weaken and sellers pull listings, that would be a more concerning combination.”
For now, the data suggest buyers are still signing contracts—just more selectively. “Sellers are making more price adjustments as summer progresses, and buyers are responding more selectively, but homes are still going under contract at a faster pace than last year,” Hale said. The full July report and historical data are available on Realtor.com’s research page.
What it means
Why price cuts matter for buyers right now
More negotiating room and realistic pricing could unlock deals for patient shoppers.
The rising share of price reductions is a direct signal that sellers are adjusting to current market realities. After years of rapid appreciation and bidding wars, many homeowners listed at aspirational prices in spring 2026, only to find that buyers—facing 30-year mortgage rates near 6.8% to 6.9% in early August—were unwilling to stretch. One in five listings now carries a price cut, and in some markets, it’s closer to one in three.
For buyers, this creates opportunity. Homes that have been on the market for 45 to 60 days and carry a reduction are often ripe for negotiation. Sellers who’ve already cut once may be open to further concessions—covering closing costs, offering rate buydowns, or accepting offers below the reduced ask. In markets like Portland, Denver, and Dallas, where price cuts exceed 28% of listings, buyers have measurably more leverage than they did six months ago.
Affordability remains the defining constraint. The median existing-home sale price reached an all-time record of $440,600 in June, up 1.8% year over year, even as list prices have fallen. The gap reflects the mix of homes selling (often newer or better-located properties) versus what’s sitting on the market. Buyers willing to look at homes with price reductions—especially those that have been listed for two months or more—may find deals that weren’t available during the spring rush.
If you’re shopping now, focus on markets and price points where inventory is growing and days on market are rising. Use our affordability calculator to see what monthly payment you can handle at current rates, and read our guide to negotiating offers to understand how to approach a seller who’s already cut their price once. For buyers with limited cash, our zero-down and low-down-payment programs page explains assistance options that can help you compete even in a market where sellers are getting pickier.
Smart moves for August
Watch for stale listings: Homes on the market 60+ days are most likely to accept below-ask offers or seller concessions.
Target high-inventory metros: Markets with 20%+ price cuts (Portland, Denver, Dallas, Austin) offer the most negotiating room.
Lock rates when you can: Mortgage rates have been volatile; if you find a good deal, don’t wait for a rate drop that may not come.
Ask for help: Seller-paid closing costs or temporary rate buydowns can offset higher monthly payments without requiring a lower purchase price.
Quick answers
Price cuts and pending sales: common questions
What does it mean when 20% of listings have a price cut?
It means one in five homes for sale has been reduced from its original asking price. This typically happens when a home sits on the market longer than the seller expected and isn’t attracting offers. A price cut signals the seller is motivated and may be open to negotiation. In a balanced market, 15–20% of listings carry reductions; higher percentages suggest buyer leverage.
Are price cuts a sign the housing market is crashing?
No. Price cuts are a normal part of market adjustment, not a crash. Sellers often test the market at higher prices, then adjust based on buyer response. The fact that pending sales are still rising year over year—meaning buyers are signing contracts—shows demand is holding up. A crash would show falling pending sales, rising inventory, and widespread distress, none of which are present in July 2026 data.
How long should I wait before making an offer on a price-reduced home?
If a home has been on the market 45–60 days and has already been reduced once, it’s often a good time to make an offer. Waiting longer may work in very slow markets, but in most cases, the best deals come from acting when a motivated seller has just cut the price. Use days on market and the size of the reduction as clues: a 5%+ cut after two months suggests urgency.
Which cities have the most price cuts right now?
As of July 2026, Portland, Oregon leads with 31.0% of listings carrying a reduction, followed by Denver at 30.9% and Dallas at 28.3%. Austin, Texas also sees high levels of price cuts. These markets have seen significant inventory growth and slower buyer demand, giving shoppers more room to negotiate. Conversely, Hartford, New York, and Buffalo have the fewest cuts, under 11% of listings.
What is a “pending sale” and why does it matter?
A pending sale means a buyer and seller have signed a purchase contract, but the transaction hasn’t closed yet. Pending sales are a leading indicator: they typically close 30–60 days later and become completed home sales. Rising pending sales suggest more buyers are committing, which points to future increases in closed sales and a healthier market. The eight-month growth streak in pending sales is the longest since mid-2021.
Should I buy now or wait for prices to fall further?
That depends on your local market and financial situation. Nationally, list prices are down 2.4% year over year, and one in five homes has a price cut—both favorable for buyers. However, mortgage rates near 7% mean monthly payments are still high. If you find a home that fits your budget and needs, buying now and refinancing later (if rates drop) is often smarter than waiting and risking higher prices or more competition. Use our home buying timeline to plan your purchase and our mortgage guide to understand your rate options.