On The Market Price Cuts Hit 12-Year High, Sellers Reconsider Quickly
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Aug 11, 2025 Mike Simonsen, Chief Economist at Compass, brings his expertise to the conversation about the housing market's fluctuating dynamics. With 42% of homes seeing price cuts, Simonsen explains how this trend doesn’t necessarily indicate a crash. Instead, he highlights how rising inventory and falling prices offer buyers newfound negotiating power. The discussion also touches on the impact of high interest rates and evolving economic factors reshaping mortgage rates, providing listeners with valuable insights into navigating today’s real estate landscape.
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Widespread Price Cuts Nationwide
- 42% of active listings have taken a price reduction, a 12-year high.
- This signals elevated seller repricing and increased buyer negotiating power.
Inventory Has Returned To Normal
- Inventory is up 26.6% year-over-year and 867,000 single-family homes are unsold.
- Mike Simonsen says supply is back near pre-pandemic levels.
Price Cuts Reveal Buyer Leverage
- Watch the share of listings with price cuts as a real-time demand signal.
- If price reductions rise, offer more aggressively because buyers gain leverage.