Price Cuts Are Climbing and Orange County Buyers and Sellers Should Take Note

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If you have been watching the housing market this fall, you may have noticed more listings with reduced prices. Redfin's latest analysis found that 21.1% of active U.S. sellers lowered their asking price during the four weeks ending September 20. That is the highest share for this time of year in Redfin's records, which go back to 2022. A year earlier, the figure was 19.8%.

The increase is modest, though, and that is the interesting part. Buyers have more leverage than they have had in years, bidding wars have cooled, and homes are taking longer to sell. Yet price cuts have only edged up. The reason is that sellers are responding to the market in different ways.

Why the Rate Is Not Rising Faster

Redfin points to three behaviors. Some homeowners are choosing not to list at all. Others are pulling their homes off the market instead of accepting less than they wanted. A third group is pricing realistically from the start, rather than holding onto the sky-high expectations of 2021.

Mortgage rates sitting above 7%, an uncertain economy, and listings that linger all add pressure. Redfin Senior Economist Asad Khan notes that the sellers who close quickly are the ones who price correctly from day one, while those who rely on outdated comps or hope for a bidding war often end up cutting later.

What This Means for Orange County

Redfin's data covers the Anaheim metro area, which includes Orange County. There, 19.5% of active listings had a price drop, slightly below the national rate. But the year-over-year jump was 3.2 percentage points, more than double the national increase. Price cuts are becoming more common locally, even if we are not yet at the levels seen in Denver, where 30.9% of sellers cut their price, or in Texas metros like Dallas and Austin.

For comparison, Los Angeles came in at 16.5%, Riverside at 17.8%, and San Diego at 21.7%. Orange County sits comfortably in the middle of Southern California. The market is shifting, but it is far from a free fall.

Advice for Sellers

A price reduction is not the end of the world, but it is better to avoid one. As the report puts it, "a price cut isn't a failure." It simply means the first number was too ambitious. The bigger risk is letting a listing go stale. Buyers tend to wonder what is wrong with a home that has sat for weeks.

Many sellers think pricing high leaves room to negotiate down. In practice, it often scares off the very buyers you want to attract in the first week. Here is what I recommend to my Whitestone Real Estate clients:

1. Price from current, nearby sales rather than what a neighbor got in 2021 or 2022.
2. Invest in strong presentation before launch, since the first two weeks matter most.
3. Review activity early and adjust quickly if showings are slow, instead of waiting for the listing to age.

Advice for Buyers

Your power is real, and it is showing up earlier than before. Because more sellers are pricing sensibly at the start, you may see fewer dramatic markdowns after a home hits the market. That does not mean you have less leverage. It means the negotiation is happening at the listing price.

Consider offering below asking on homes that have been on the market for more than a month. Ask about concessions too, since nearly half of U.S. buyers are getting them from sellers. These can include money toward repairs, help with closing costs, or a mortgage rate buydown, which is especially valuable with rates above 7%.

Bottomline

Whether you are thinking about selling a home you have outgrown or finally buying in Orange County, this market rewards preparation and local knowledge. Prices, timing, and negotiation strategy all depend on the specific neighborhood, and the numbers can look very different from one street to the next. If you are considering a move to Orange County, reach out to me at Whitestone Real Estate. Let's talk about your goals, build a plan that fits today's market, and get you into the right home at the right price.

Reference: Anderson, D. (2026, September 30). Price-drop rate ticks up to record September rate amid strong buyer's market. Redfin.