More than one-third of February homesellers cut their list price last month, reaching a record high for the month as buyers gained leverage in a market shaped by high mortgage rates, elevated prices and economic uncertainty, according to a Redfin analysis.
More than one-third of February homesellers cut their list price, reaching a record high for the month as buyers gained leverage in a market shaped by high mortgage rates, elevated prices and economic uncertainty, according to a recent Redfin analysis.
Some 34.2 percent of February homesellers lowered their list price, up from 31.5 percent a year earlier and the highest February share in data going back to 2012.
Sellers who cut their prices dropped them by an average of $40,915, or 7.3 percent, the highest February percentage since 2023. Among all February sellers, not just those who reduced their price, the average cut was $13,463, or 2.4 percent, the highest February percentage on record.
Redfin attributed the trend to a buyer’s market in which sellers outnumber buyers. Buyers spooked by high mortgage rates, elevated home prices and economic uncertainty have pulled back, giving those who remain in the market more negotiating power.
Rates retreat, but pressure persists
Mortgage rates offered some relief this week. The 30-year fixed rate fell to 6.37 percent for the week ending April 9, according to Freddie Mac, down from 6.46 percent the prior week, a seven-month high reached amid geopolitical and economic uncertainty before a ceasefire was announced. Rates remain below the 6.62 percent borrowers faced during the same week in 2025.
“For buyers, the broader picture has not changed: More homes are available than a year ago, prices are softening, and mortgage rates, while volatile, remain at their most favorable springtime levels since 2022,” said Anthony Smith, senior economist at Realtor.com.
Anthony Smith | Realtor.com
Still, inventory signals are mixed. Active inventory climbed 3.9 percent year over year, and year-to-date inventory is up 7.4 percent, according to Realtor.com’s weekly housing trends report. But new listings dropped 10 percent year over year for the week ending April 4, the largest weekly decline since a winter storm disrupted activity in late January.
The median listing price fell 2.1 percent year over year, marking the 24th consecutive week of flat or negative price growth.
Spring sellers have the edge
Despite the elevated number of price cuts in February, sellers who close in spring are historically the least likely to face one. May had the lowest share of price cuts in six of the past 10 years. April held that distinction in three of the past 10 years, including 2024 and 2025. December sellers face the highest risk of price cuts.
Redfin reported last month that almost 45,000 U.S. homes that delisted in 2025 were relisted in January 2026 — the highest January figure in records going back to 2016 — as sellers bet on a stronger spring market.
“A lot of people who couldn’t sell their homes last year opted to delist instead of reducing the price, with a plan to relist this spring because they knew that would give them a better chance of selling,” said Aditi Jain, a Redfin Premier agent in Boston. “The Boston market is very different in spring versus fall. Some homeowners need to move immediately, but those who can afford to time the market may get a better price.”
Short-term owners cut prices at the highest rate
The likelihood of a price cut varies depending on how long a seller has owned their home. Some 37.4 percent of February sellers who had owned their home for two years or less cut their list price, compared with 34.9 percent of those who had owned for two to seven years and 31.8 percent of those who had owned for at least seven years.
Redfin noted that many sellers who bought during the pandemic-era price surge are at risk of being underwater in markets where prices have since declined, leading some to price high before adjusting to market conditions.
Texas, Florida lead in price cuts
San Antonio had the highest share of price cuts among the 50 most populous U.S. metro areas, with 57.9 percent of February sellers lowering their list price. Austin followed at 55.2 percent, then Dallas at 47.3 percent, Tampa at 45.9 percent and Fort Lauderdale at 44.9 percent.
Redfin attributed the concentration in Texas and Florida to strong homebuilding activity that has expanded inventory and given buyers more options. Florida faces additional pressure from intensifying natural disasters, rising insurance premiums and increasing condo HOA fees, which have prompted some homeowners to sell.
Bay Area sellers hold firm
San Francisco had the lowest share of price cuts among major metros, with just 7.4 percent of February sellers reducing their list price. San Jose followed at 11.1 percent, Newark at 12.9 percent, Oakland at 14.3 percent and Seattle at 18.4 percent.
Bay Area sellers have historically underpriced homes to generate bidding wars, a strategy that reduces the likelihood of subsequent price cuts, according to Redfin.
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