Price Cuts Hit 9-Year High: Is the Market Shifting?
- Neil Caron
- Jun 12
- 2 min read
June 11, 2025 | Market Trends, Real Estate | Presented by ReadySetLoan
The latest housing data is sending a subtle — but important — message to Connecticut buyers and sellers: sellers are starting to blink.
According to the May 2025 Inventory Report, price reductions on home listings surged nationally, with 19.1% of homes experiencing price cuts — the highest share for any May since at least 2016. That marks the fifth straight month of growing price reductions as sellers react to cooling demand and affordability pressures.
While much of the national focus is on southern and western cities like Phoenix, Tampa, and Denver (where 21% of listings saw price cuts), the Northeast — including Connecticut — is telling a slightly different story.
Why Connecticut's Market is Still Tight
In the Northeast, only 11% of listings saw price reductions, largely due to limited inventory and persistent buyer competition. With fewer homes on the market, sellers in Connecticut haven’t been forced to adjust prices as aggressively — yet.
But buyers in the Nutmeg State should take note: national trends often trickle eastward. If affordability continues to strain buyers, price flexibility could become more common even in markets like ours.
The Affordability Factor
"Price reductions have become more common in each of the past five months, a trend suggesting that sellers are adjusting their expectations in the face of affordability challenges and weaker buyer demand in some markets," says Danielle Hale, Chief Economist at Realtor.com.
Mortgage rates, higher home prices, and elevated insurance and tax costs are all contributing to buyers pulling back or negotiating more assertively. As a result, sellers are starting to meet the market halfway to get deals done.
🐷 RSL Piggy Points:
National price cuts hit 19.1% of listings in May 2025 — highest since 2016.
South and West markets are seeing the steepest reductions.
Northeast (including CT) remains tight with only 11% of listings seeing cuts.
Rising affordability pressures could eventually soften prices here too.
Opportunity may be coming for CT buyers who stay patient.
🎙 Neil’s Take
"We’re starting to see a softening in seller expectations across the country, and Connecticut may not be far behind. Buyers should stay financially prepared — when inventory ticks up or rates move, being pre-approved and ready to move quickly can make all the difference."— Neil Caron, Area Sales Manager, CMG Mortgage
At ReadySetLoan, we track these trends daily so you don't have to. Whether you're buying, selling, or just planning ahead, our team is here to guide you through every shift in the market.
👉 Visit ReadySetLoan.com to connect with your educational mortgage resource today.
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