Watch Price Reductions in August

Mortgage rates remain near their highest levels in over a year, and affordability pressure is continuing to weigh on homebuyer demand. This week, Mike Simonsen looks at why price reductions are one of the fastest indicators to watch as the market moves through August. Price cuts rise when demand slows and move lower when demand improves. Right now, 41.4% of active listings have taken a price cut from the original list price, up nearly 50 basis points in the first week of August. That is a clear signal that buyers are becoming more cautious. Inventory remains mostly unchanged from last year, with approximately 1.1 million homes on the market nationwide. New listings are also still tight, with 81,000 sellers coming to market this week, far below pre-pandemic August levels. Pending home sales are still up 3.5% year to date, but the pace has slowed through July and early August. Recent weekly sales activity is now essentially flat compared to last year. Home prices remain steady. The median price of homes going into contract is about $399,000, essentially unchanged from 2025. Elevated price reductions signal softer demand, but they do not yet point to broadly falling home values. The takeaway: price reductions are the signal to watch in August. They show buyer demand is softening, but the market is not seeing a major inventory surge or a broad decline in home prices. About Mike Simonsen Mike Simonsen is the Chief Economist at Compass International Holdings and founder of Altos Research. He is known for his real-time housing market analysis, tracking inventory, pricing, mortgage rates, and buyer demand weeks before traditional housing reports are released. Subscribe for weekly housing market updates and real-time housing data insights. This post is for informational purposes only. It is not intended as financial, legal, or real estate advice. Any market forecasts or predictions discussed are speculative and are subject to change. Actual results may differ. You should seek their own professional advice before making decisions. Christie's International Real Estate disclaims any liability for reliance on this content. #HousingMarket #RealEstate #HousingMarketUpdate #RealEstateMarket #HousingTrends#HomePrices #Inventory #MortgageRates #HousingData #marketupdate #mikesimonsen