Zillow Reports Pending Sales Fell 8.5% From A Year Ago And More Than A Quarter Of Listings Now Carry A Price Cut As Rental Concessions Climb

Zillow’s September 2026 market report landed on October 6 with a headline that sounds like a weather forecast: an early winter in the housing market. Behind that phrase are numbers every buyer, seller and renter should take a look at, because they point to something rare in recent years, which is room to bargain.

A snow covered tree stands near a brown wooden house.

The Zillow September 2026 Market Report says newly pending sales fell 8.5% from a year ago. A pending sale means a seller and a buyer have agreed on a deal that has not yet closed, so fewer of them means fewer homes are changing hands than at this point last year.

More than a quarter of listings have a price cut

Here is the number that jumped out. Zillow reports that 27.4% of listings had a price cut in September, compared with 26.2% a year earlier. That is more than one in four homes for sale where the seller has already lowered the asking price. If you have been scrolling listings and feeling like everything is overpriced, you are not imagining things, and many sellers are coming to the same conclusion.

For the typical home, Zillow puts the value at $366,913, up 1% from last year. The typical monthly mortgage payment is $1,922, and the report notes the mortgage rate at the end of the month was 7.28% according to Freddie Mac. Prices are creeping up only slightly, but financing is expensive, and that combination is cooling buyer demand.

Renters are seeing the same softening

The renting side tells a similar story. Zillow lists the typical rent at $1,932, up 2.7% from a year ago. Rents are still climbing, though not dramatically. The more interesting figure is that 39.6% of rental listings offered a concession, up from 37.4% a year earlier. A concession might be a free month, a reduced deposit or a similar sweetener. When nearly four in ten listings are offering something extra, landlords are competing for tenants.

That matters for anyone whose lease is coming up. Many renters simply sign the renewal the landlord sends. It may be worth a polite phone call first.

How buyers can use this

A softer market does not mean a free for all, but it does shift a little power toward the buyer. Consider these ideas.

Look for listings that have already dropped their price. A seller who has cut once may be open to talking again.
Ask your agent about the seller’s situation and how long the home has been listed, since a longer wait often makes sellers more flexible.
Think beyond the sticker price. Sellers sometimes agree to help with closing costs or repairs even when they hold firm on the asking price.
Get a home inspection and use what it finds as a basis for a fair conversation.

How sellers should read the room

If you are selling, these numbers are a reality check, not a reason to panic. When more than a quarter of listings carry price cuts, an overpriced home can sit and collect stale days on the market. Pricing sensibly from the start, and presenting the home well, may serve you better than starting high and cutting later. Your agent can show you what comparable homes nearby have actually sold for, which is a better guide than what neighbors hope to get.

How renters can use it

Before renewing, take a look at what similar rentals in your area are offering. If listings nearby are advertising concessions, you have a reasonable basis to ask your landlord about one. Landlords often prefer keeping a good tenant over the cost and hassle of finding a new one. You may not get everything you ask for, but asking politely costs nothing.

Whatever side of the market you are on, keep the big picture in mind. Zillow’s figures are national, and your own town may look different. A neighborhood with few homes for sale can still be competitive even when the national numbers look soft. Local conditions rule, so ask a local agent what is happening on your street before you decide.

What an early winter means for your plans

Housing usually slows as the weather turns cold, with fewer families wanting to move in the middle of the school year or the holidays. Zillow’s phrase about an early winter suggests that slowdown showed up sooner than usual this year. For anyone who can be flexible about timing, that can be an advantage. Fewer buyers competing for the same home often means more patience from sellers, and a calmer pace for you.

It also helps to separate the headline from your own finances. A buyer with a solid down payment and steady income is in a better position to negotiate than someone stretching to qualify. If you are on the fence, sit down with a lender and learn what you can truly afford before you tour a single home. That way, when a price cut appears on a house you like, you can move with confidence instead of scrambling.

The takeaway is simple. Pending sales are down 8.5%, price cuts are common, and renters are being offered perks more often. After years of buyers and renters feeling squeezed, the balance is shifting a little. It is not a dramatic reversal, but it is a chance to negotiate, so go in prepared and do not be shy about asking.

Willow and Hearth