Luxury listings saw the fewest reductions, according to a new Realtor.com analysis of listings data, while lower- and mid-tier homes continue to drive price cuts across many markets. With the number of active homebuyers dropping to its lowest level since 2013 over the summer, the prevalence of price cuts varied widely on a regional basis. Price cuts are part and parcel of a slowdown in home price appreciation unfolding across the U.S. in a deflationary response to severe purchase affordability constraints instigated by consecutive years of double-digit home price growth between 2020 and 2022. According to Federal Reserve Economic Data, the average sales price of $371,100 in the second quarter of 2020 rose roughly 14.5% to $428,600 in the second quarter of 2021. Metros with the highest share of homes for sale with price cuts in September, reflecting weak demand, were Portland, Ore. (30.2%), Denver (30.7%) and Indianapolis (29.7%).