‘The Game Is Over’: Sellers Are Facing Reality on Pricing and Backing Off Unrealistic Demands

After a year of high interest rates and slow sales, home sellers are finally facing the music this summer—and getting real about home prices.According to the Realtor.com® economics team, last year was a "Cruel Summer," marked by excess inventory, flagging sales, and a general sense that buyers and sellers couldn't connect on expectations.Now, a year later, rather than resist the cooling market, sellers have begun adjusting expectations and lowering their initial asking prices. In July, the median listing price was down 2.4% year over year. What's more, fewer than 40% of the active listings saw a price cut, compared to 54% of listings in July 2025—signaling that sellers have begun to price homes more competitively from the start.“Last year, sellers were still pricing for the market they remembered, not the one buyers were actually facing,” says Realtor.com senior economist Jake Krimmel. “This summer, they’ve been more realistic from day one—and more willing to adjust when necessary."The share of active inventory considered "on sale" or price-reduced fell across all 50 of the largest metropolitan areas between July 2025 and July 2026.When price cuts are necessary, sellers are making ...