Why Home Prices Aren’t Falling Despite the Housing Slowdown

Homeowners Stay Put, Not Cutting Prices
The housing market is cooling — but home prices aren’t. Across the U.S., sellers are reluctant to lower asking prices, even as buyers pull back. Millions of Americans locked in historically low mortgage rates during the pandemic and now prefer to stay put rather than trade them for today’s higher rates and steeper monthly payments.

Dallas-area homeowner Yasmin Asberry learned that lesson firsthand. After months of little interest, she slashed her home’s price twice before finally finding a buyer. “We thought people were still excited to buy homes,” she said. “But we didn’t get many hits.”

Her experience echoes a national trend: sellers anchored to pandemic-era expectations are refusing to budge, while buyers walk away from overpriced listings.

Sellers Holding the Line
In September, 80% of housing markets saw prices rise — the highest share in nine months — according to Intercontinental Exchange data. Redfin chief economist Daryl Fairweather said sellers are choosing to wait rather than accept lower offers. “Their option besides selling is staying in their homes with really cheap mortgages,” she said.

But that strategy is backfiring. Buyers facing both high prices and high borrowing costs are opting out entirely. Purchase-agreement cancellations hit 15% in August, the highest August rate on record.

Buyers Walk, Prices Stay High
Real estate agents report that homes are lingering longer on the market as deals fall apart during inspections or over repair requests. “There’s so much to choose from now,” said Tennessee agent Heather Anschuetz. “Buyers won’t stretch their budgets just to make a deal.”

The result is a housing market at a standstill — sales are slowing, listings are shrinking, and prices remain stubbornly high. For now, America’s housing stalemate shows no sign of breaking.