Should We Panic About the Rise in Price Cuts? Here's What You Need to Know

If you've been browsing listings this spring, you might have noticed it too: more homes dropping their prices.

According to Realtor.com, 33.9% of homes for sale in March 2025 took a price cut—the highest share we’ve seen in years.

It’s natural to wonder: Should we be worried?

The short answer? No—but it’s important to have context.

Even during the 2021 housing boom, when competition was at its peak, nearly 1 in 5 listings still saw a price cut (source: ResiClub). A price reduction isn’t always a sign of distress or market weakness. In many cases, it’s a strategic move—testing buyer interest or building in negotiation room.

However, not every price cut is planned. Some reductions happen when a seller or agent needs to adjust expectations after a listing doesn't generate the response they hoped for.

Why are we seeing more cuts now?

• Inventory is climbing. Buyers have more options and can be more selective.

• Construction is pulling back. Builders are slowing down, which could tighten inventory again later.

• Today's buyers are cautious. With higher rates and economic uncertainty, buyers are carefully weighing every decision.

All of this makes the market harder to predict—and easier to misread.

That’s why working with an experienced real estate team matters more than ever. Understanding the story behind the data—whether you're buying, selling, or just starting to plan—can mean the difference between a stressful process and a confident one.

Thinking about making a move, even if it’s months away?
Let’s chat. We can walk you through timing, pricing strategies, and how to prep your home long before you’re ready to list—so you’re not scrambling later.