Top 10 Cities in California where Home Sellers Are Cutting Prices the Most
April 17, 2025
California’s housing market is undergoing a notable shift in 2025, as home sellers across the state are increasingly reducing their asking prices. According to data available on Reventure App, 21.3% of homes for sale had a price cut in March 2025, which marks one of the highest levels in years and reflects growing affordability concerns and slower buyer demand.
This percentage is nearly double what was seen during the peak market years of 2021 and 2022. Moreover, with over 85,000 homes on the market, sellers are finding it harder to compete. As a result, more cities in California are emerging where price reductions have become the new norm. Let’s find out the 10 metros in the state with the highest price cut % in 2025:
10 Metros in California With the Highest Price Cut % in 2025
As California’s housing market cools in 2025, several cities are standing out for major price reductions. In many of these areas, sellers are adjusting to slower demand, rising inventory, and affordability challenges. Let’s take a closer look at the top 10 cities going through this market decline phase starting with the highest:
1. Stockton, CA – 25.4% Price Cut
Stockton tops the list with the highest percentage of listings undergoing price cuts. Over 1 in 4 homes had their asking price reduced, indicating softening demand. Moreover, Stockton’s home value growth stands at just 1.1% year-over-year, one of the lowest in the state. With an overvaluation rate of 9.0% and a population of over 800,000, affordability pressures remain a key concern for buyers.
2. Riverside, CA – 23.9% Price Cut
Riverside follows closely with nearly 24% of homes for sale seeing a price cut. Home values have grown by only 1.8% YoY, and the city carries an overvaluation rate of 18.5%. A value-to-income ratio of 6.4 suggests moderate affordability challenges. With a population nearing 4.7 million, this inland Southern California hub is facing a correction as buyers pull back.
3. Modesto, CA – 22.6% Price Cut
Modesto is another Central Valley city with significant seller markdowns as 22.6% of homes have seen price cuts. Although the city’s home values have risen 2.0%, its affordability metrics are better than many others, with a low overvaluation of 8.0% and a value/income ratio of 5.5. With a smaller population of around 550,000, local economic pressures are playing a larger role.
4. Bakersfield, CA – 22.5% Price Cut
With 22.5% of homes for sale reduced in price, Bakersfield is seeing clear signs of a market reset. Home value growth remains moderate at 4.0%, and the overvaluation sits at 19.4%. The affordability outlook is better than California’s coastal cities, with a value-to-income ratio of just 5.0. Bakersfield’s population stands at about 913,000, and the city’s relatively lower home prices may cushion it against deeper declines.
5. Fresno, CA – 20.3% Price Cut
Fresno also shows strong price cut activity with 20.3% of homes discounted. Despite modest home value growth (2.4%), the city maintains an 11.7% overvaluation. With a value/income ratio of 5.4 and a population just over 1 million, the market appears to be self-correcting amid affordability concerns.
Stockton, Riverside, and Modesto lead California in 2025 with the highest share of homes facing price cuts. Access the above table here. [Link]
6. Oxnard, CA – 20.3% Price Cut
Tied with Fresno, Oxnard also has 20.3% of listings undergoing price reductions. This city has an overvaluation of 10.9% and a value-to-income ratio of 7.9, which reflects mild affordability strain. Home values have grown by 2.4% YoY, and the population is around 829,000.
7. Visalia, CA – 19.7% Price Cut
In Visalia, 19.7% of homes have experienced price cuts. It is one of the more affordable cities on the list, with a low overvaluation of 5.4% and a value-to-income ratio of just 4.6. Moreover, home values have grown 3.7% YoY, suggesting steady if unspectacular market conditions.
8. Los Angeles, CA – 19.0% Price Cut
Los Angeles, California’s largest city, has a 19% price cut rate. With a population of nearly 13 million and a sky-high value/income ratio of 10.2, affordability remains a major barrier. Home value growth is limited to 3.9%, while overvaluation is estimated at 16.2%, reflecting persistent pricing challenges in this expensive metro.
9. San Francisco, CA – 18.6% Price Cut
Despite being one of the most expensive markets, San Francisco saw 18.6% of listings marked down. Home value growth is a weak 2.0%, and the city has an overvaluation of only 7.3%, which is much lower than most.
10. San Jose, CA – 14.9% Price Cut
San Jose rounds out the list with a 14.9% price cut rate. Interestingly, home value growth is relatively strong at 7.2%, but the city remains severely unaffordable with a 10.6 value-to-income ratio and a 25.6% overvaluation rate, which is the highest on the list.
California Home Price Cuts Surge to Highest Level Since 2019
Price cuts are a key market signal, often pointing to softening buyer demand and rising seller pressure. In California, price reductions rose from 7.2% in 2021 to 21.3% in 2025.
California’s price cut % reached 21.3% in 2025, which is the highest level since 2019. Access the above graph here. [Link]
This steady increase reflects affordability challenges and high mortgage rates in the state. California is a buyer’s market right now and it is clearly in a decline phase. To compare price cut trends and other market metrics across states, sign up for Reventure App’s premium plan for just $39/month.
FAQs about Affordable California Cities
1. Why Are So Many California Home Sellers Cutting Prices in 2025?
California sellers are reducing prices due to high mortgage rates, affordability issues, and rising inventory levels. This shift reflects softening demand and a transition toward a buyer’s market.
2. Which California City Has the Highest Percentage of Home Price Cuts in 2025?
Stockton leads the state with 25.4% of home listings experiencing price reductions, followed closely by Riverside and Modesto. These cities are facing slower home value growth and increasing overvaluation concerns.
3. How Can I Track Housing Market Trends Like Price Cuts Across Other States?
You can track real-time housing data, including price cut percentages, inventory levels, and home value trends, by signing up for Reventure App’s premium plan. It offers access to state-by-state housing analytics for just $39/month.
