The Price Cut Comeback: What Sellers and Buyers Need to Know

Price reductions are rising nationwide, and Central Iowa is feeling it too. Discover why homes are being marked down and what it means if you're planning to buy or sell this summer.

If you’ve noticed more “Price Reduced” signs around Central Iowa lately, you’re not imagining things. Nationwide, price cuts surged this spring, with one in six homes on the market in May experiencing a reduction, according to Realtor.com. That’s the highest share in over a decade.

This chart created by Les Sulgrove at Simply Des Moines shows the number of weekly price reductions in the Central Iowa area are significantly higher Year-Over-Year, with 532 in Week 20 alone.

So, what’s going on?

After years of rapid home appreciation and intense competition, many sellers are still pricing homes as if it’s 2021. But today’s market has shifted. Mortgage rates remain elevated, and while buyer demand is still strong in desirable areas like Norwalk and Warren County, buyers have become far more cautious—and budget-conscious.

The Pricing Misstep

Some sellers, hopeful for bidding wars and above-listing offers, are starting high. But when offers don’t come in quickly, a price cut often follows within the first 30 days. In Warren County, I’ve seen several homes reduce prices by $10,000 or more after sitting longer than expected. That initial pricing decision can either set the home up for success—or cause it to stagnate.

As a real estate professional, I coach sellers to price competitively from the start. A strategic price creates urgency and often leads to stronger offers. Overpricing may feel like a safety net, but it usually ends in disappointment and delays.

What Buyers Should Know

For buyers, price reductions can be an opportunity—but they’re not always a sign of a bargain. Sometimes a home is overpriced from the start. Other times, a price cut reflects a seller’s motivation or a shift in their timeline.

If you’re house hunting, keep an eye on homes that have been on the market for 3+ weeks and watch for reductions that bring them into a more realistic range. Don’t be afraid to negotiate, especially if the home has had minimal traffic or no offers. And remember, a home that’s been on the market a while doesn’t mean something is wrong—it may just need a new strategy.

Bottom Line

Whether you’re selling or buying, understanding the current pricing trends can give you a serious advantage. We're no longer in a market where every home sells in 48 hours. Price awareness, realistic expectations, and local expertise are key.

Have questions about how this trend is playing out in your neighborhood? Let’s talk. I’m always here to help.

As a Broker Associate/REALTOR® at EXIT Realty and Associates, I specialize in buying and selling real estate throughout Central Iowa, including Norwalk, Des Moines, West Des Moines, Cumming, Indianola, Carlisle, Waukee, Urbandale, Grimes, Clive, Johnston, Ankeny, Altoona, and Pleasant Hill. I proudly serve Warren, Polk, Dallas, and Madison Counties.

📞 Call me, Jon Niemeyer, at 515-490-4675, and let’s find your dream home in Central Iowa!