More than a third of home sellers in February cut their list prices last month, hitting the highest price for the month as buyers gained more leverage in a market shaped by high mortgage rates, rising prices and economic uncertainty, according to Redfin analysis.
More than a third of home sellers lowered their list prices in February, reaching an all-time high for the month, as buyers gained more leverage in a market shaped by high mortgage rates, soaring prices and economic uncertainty, according to a recent analysis from Redfin.
About 34.2% of home sellers lowered their list prices in February, up from 31.5% a year earlier and the highest share in February in the data since 2012.
Sellers who reduced their prices averaged $40,915, or 7.3%, the highest price reduction in February since 2023. The average price reduction for all sellers in February was $13,463 (2.4%), the highest price reduction rate ever in February.
Redfin attributed this trend to a buyer’s market, where there are more sellers than buyers. Buyers spooked by high mortgage rates, soaring home prices and economic uncertainty are pulling out, giving bargaining power to those who remain in the market.
Interest rates retreat, but pressure remains
Mortgage rates eased somewhat this week. The 30-year fixed rate for the week ending April 9 fell to 6.37% from 6.46% the previous week, reaching a seven-month high amid geopolitical and economic uncertainty before the ceasefire announcement, Freddie Mac said. The interest rate is still below the 6.62% that borrowers faced in the same week in 2025.
“For buyers, the big picture hasn’t changed: There are more homes available than a year ago, prices are softer, and mortgage rates, although volatile, remain at their most favorable spring levels since 2022,” said Anthony Smith, senior economist at Realtor.com.
Anthony Smith | Realtor.com
Still, inventory signals are mixed. According to Realtor.com’s Weekly Housing Trends Report, available inventory is up 3.9% year-over-year and year-to-date inventory is up 7.4%. However, the number of new listings for the week ending April 4 fell 10% from a year earlier, the biggest weekly decline since winter storms disrupted activity in late January.
The median listing price fell 2.1% year-over-year, marking the 24th consecutive week of flat or negative price growth.
Spring sellers have an advantage
Despite the increase in price reductions in February, sellers who close in the spring have historically been the least likely to face price reductions. May’s price decline was the lowest in six of the past 10 years. April maintained that distinction in three of the past 10 years, including 2024 and 2025. December sellers face the highest risk of price declines.
Redfin reported last month that about 45,000 U.S. homes that were delisted in 2025 were relisted in January 2026 as sellers bet on a strong spring market. This is the highest amount ever recorded in January since 2016.
“Many people who couldn’t sell their homes last year chose to delist instead of lowering the price and planned to relist this spring because they knew they would have a better chance of selling,” said Aditi Jain, a Redfin Premier agent in Boston. “Boston’s market is very different in the spring and fall. Some homeowners may need to move quickly, but those who can afford to time the market may be able to get a better price.”
Short-term owners reduce prices at the highest rate
The potential for a price reduction depends on how long the seller has owned the home. In February, about 37.4% of sellers who had owned their home for less than two years reduced the list price, compared with 34.9% of those who had owned their home for two to seven years or more, and 31.8% of those who had owned their home for seven years or more.
Redfin noted that many sellers who bought during the pandemic-era price spike are at risk of being underwater in a market where prices have since fallen, with some outbidding before adjusting to market conditions.
Texas and Florida lead in price reductions
San Antonio had the highest rate of price reductions among the 50 most populous metropolitan areas in the U.S., with 57.9% of sellers reducing their list price in February. Austin followed at 55.2%, followed by Dallas at 47.3%, Tampa at 45.9% and Fort Lauderdale at 44.9%.
Redfin attributes the concentration in Texas and Florida to strong homebuilding activity, expanding inventory and giving buyers more options. Florida is facing additional pressures from an increase in natural disasters, rising insurance premiums and higher HOA fees for condominiums, prompting some homeowners to sell.
Bay Area sellers are strong
San Francisco had the lowest rate of price reductions among major metropolitan areas, with only 7.4% of sellers reducing list prices in February. San Jose followed with 11.1%, Newark with 12.9%, Oakland with 14.3% and Seattle with 18.4%.
Bay Area sellers have traditionally priced their homes low to trigger bidding wars, a strategy that reduces the chance of subsequent price drops, according to Redfin.
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