Home sellers in these 19 cities—led by Phoenix—are making major price cuts to attract buyers in today’s shifting market.
As seen on MoneyTalksNews.com, February, 2025.
Phoenix Leads Nation in Home Price Cuts
Homebuyers are gaining more negotiating power as sellers across the country lower asking prices. According to Zillow, 22.8% of listings had a price cut in January. That is the highest January share since Zillow began tracking the data in 2018.
High mortgage rates continue to make homes less affordable. As a result, many sellers are offering concessions and reducing prices to attract buyers. This shift is creating more opportunities for buyers and helping bring more activity back to the housing market.
Phoenix is leading the trend. In January, 33.5% of homes for sale in the metro area had a price reduction, the highest percentage among major U.S. markets. Buyers now have more choices and greater flexibility when negotiating a purchase.
Trevor Halpern, CEO of Halpern Residential, says buyers are beginning to benefit from the changing market conditions. As he explained, “Buyers have a little bit of negotiating power … when they’re negotiating on a purchase, and a lot of that comes down to incentives.”
While sellers still hold significant equity, pricing a home correctly has become more important. In today’s market, buyers are paying closer attention to value, and sellers are increasingly willing to make adjustments to get a deal across the finish line.
Why It Matters for Phoenix Buyers
More price reductions do not mean the Phoenix housing market is collapsing. Instead, they show that the market is becoming more balanced. Buyers have more inventory to choose from, more room to negotiate, and a better chance of securing incentives than they did during the highly competitive pandemic-era market.