Why it matters
- 20.8% of active listings had a price reduction in September, the highest September share since 2018, according to Realtor.com.
- Active listings rose 5.4% from a year earlier to about 1.16 million, while homes under contract fell 4.1%.
- Higher mortgage rates are thinning the buyer pool for finished flips, so sale prices and days on market need more cushion.
About one in five homes for sale had a price cut in September. The share of active listings with a price reduction rose to 20.8%, the highest September reading since 2018, according to Realtor.com's monthly housing report, released Sept. 30.
For flippers, that is a direct read on the resale market. More homes are competing for fewer buyers, and many sellers are lowering their asking prices to get deals done.
What happened to housing inventory in September?
Inventory kept rising. Active listings climbed 5.4% from a year earlier to about 1,161,000 homes, according to Realtor.com. That left inventory 9.1% below typical pre-pandemic levels, the first time the gap has fallen below 10% in the current recovery.
Demand moved the other way. The number of homes under contract fell 4.1% from a year earlier, and new listings slipped 0.7%.
| Measure (September 2026) | Value | Change |
|---|---|---|
| Active listings | about 1,161,000 | +5.4% from a year earlier |
| Homes under contract | — | −4.1% from a year earlier |
| Median list price | $419,250 | −1.2% from Aug., −1.4% from a year earlier |
| Price per square foot | — | −1.7% from a year earlier |
| Listings with a price cut | 20.8% | +0.9 points from a year earlier |
| Median days on market | 61 | 1 day longer than Aug. |
The median list price fell for the 11th straight month on an annual basis, Realtor.com said.
Where are price cuts most common?
The West had the highest share of listings with a price cut, at 22.8%, followed by the South at 21.6%. Among large metro areas, price reductions were most common in Salt Lake City (33.6%), Denver (32.1%) and Portland, Ore. (31.6%). The steepest drops in price per square foot were in Austin (−8.4%) and Tampa, Fla. (−6.0%).
Why are more sellers cutting prices?
Rates are the main reason. Freddie Mac said the average 30-year fixed mortgage rate rose to 7.28% on Oct. 1, from 7.03% a week earlier and 6.34% a year earlier. The Mortgage Bankers Association said purchase applications fell 4% in the week ended Sept. 25 as its 30-year rate climbed to 7.3%, the highest in almost three years.
"September's housing data shows that buyers are gaining leverage, but higher mortgage rates are limiting how much of that opportunity they can use," said Danielle Hale, Realtor.com's chief economist.
Prices have not collapsed. The S&P Cotality Case-Shiller national home price index rose 1.9% in the year through July, up from a 1.6% gain in June, S&P Dow Jones Indices said Sept. 29.
What this means for flippers
A finished flip now competes with more listings and a thinner pool of buyers. That affects both the price you can get and how long you hold the house.
- Use current comps. Build your after-repair value from recent closed sales, not old peaks or list prices. The ARV from Comps tool helps.
- Know your floor. The Break-Even Sale Price calculator shows how far you can cut before you lose money.
- Price the wait. Each extra month on the market adds interest, taxes and utilities. The Holding Cost Timer shows what it costs.
For more on how rates hit flip financing, see Rates at 7%: What the Fed's Hike Means for Flip Financing and Exits. For the latest margins, see Flip Margins Slide to 21.5%.
Sources
- Realtor.com via PR Newswire, Price Cuts Reach Yearly High as Inventory Nears Pre-Pandemic Levels: Realtor.com September Housing Report (Sept. 30, 2026)
- Freddie Mac, Primary Mortgage Market Survey (Oct. 1, 2026)
- Mortgage Bankers Association, Mortgage Applications Decrease in Latest MBA Weekly Survey (Sept. 30, 2026)
- S&P Dow Jones Indices, S&P Cotality Case-Shiller Index Reports Annual Gain in July 2026 (Sept. 29, 2026)