HOME SELLERS BREAK WORRYING RECORD

More than one third of home sellers cut their asking price in February, the highest share for that month in records going back to 2012, according to Redfin data. 

That shows that sellers in the U.S, even ahead of the busy spring home-buying season, were not feeling particularly optimistic about their chances to find interested buyers—especially as these have many more options available on the market than they used to in the past few years.

Why It Matters

Over the past year, the U.S. has shifted into a buyer’s market as the number of for-sale homes in the country grew amid dwindling demand. As of February, there were an estimated 46.3 percent more home sellers than buyers, or nearly 630,000 in numerical terms, according to Redfin.

This gap has enabled buyers across the country—especially in those regions where inventory has grown the most—to negotiate prices down, forcing sellers to adjust their expectations. The spring time should represent an exception, as it usually offers the best chance for home sellers to close a deal without a price cut due to increased competition.

But this year, so far, demand has not picked up enough to give sellers a bit more of an upper hand, data shows.

What To Know

A total of 34.2 percent of home sellers cut their asking price in February, Redfin found, by an average of $40,915, or 7.3 percent. Among all home sellers in the same months, including those who did not compromise on their list price, the average price cut was $13,463, or 2.4 percent—the highest February percentage on record.

The numbers were obtained through an analysis of closed home sales only, and did not take into account final sale prices, which in some cases can include additional price cuts. The share of sellers lowering prices might be even higher, as the data does not include price cuts that happened prior to a relisting.

Home sellers in metropolitan areas in the South were the most likely to cut prices, as this region has seen an explosion of inventory in the past few years—especially Florida and Texas, the states which have built the most new homes since the pandemic.

In San Antonio, Texas, 57.9 percent of February home sellers cut their list price—the highest share among the 50 most populous U.S. metros. Next came Austin, Texas (55.2 percent), Dallas, Texas (47.3 percent), Tampa, Florida (45.9 percent) and Fort Lauderdale, Florida (44.9 percent).

On the other hand, home sellers were less likely to cut prices in markets in the West and the Northeast where demand has remained high and inventory tight.

In San Francisco, California, 7.4 percent of February home sellers lowered their asking prices. Next came San Jose, California (11.1 percent), Newark, New Jersey (12.9 percent), Oakland, California (14.3 percent) and Seattle, Washington (18.4 percent).

What People Are Saying

Aditi Jain, a Redfin Premier real estate agent in Boston, said in the Redfin report: “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.

“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.”

Jesse Landin, a Redfin Premier agent in San Antonio, Texas, said in a recent report: “There are more homes on the market than there are buyers, so sellers need to make sure their house stands out.

“The most important day is picture day—that determines whether house hunters will actually walk through your home. Paint the walls, make small repairs, and, if you can afford it and your local agent agrees it’s worthwhile, make bigger repairs. Your agent should also hire the right media group for photography and video; pictures taken with a phone just don’t cut it anymore. And make sure you hire an agent with a clear, specific plan for your home, not just a generic approach. That’s what I do—I have a plan for each home. Buyers making large down payments and taking on high monthly payments want a home that’s as close to perfect as possible, because they have more choices in the market.”

What Happens Next

While housing experts and home sellers alike were hoping that this spring season would boost demand and sales in the U.S. market, rising prices and growing economic fear linked to the Iran war seem to have made buyers more cautious.

Pending home sales post the biggest decline in three months during the four weeks ending April 5, according to Redfin, falling 2.4 percent year-over-year as mortgage rates are once back on the rise and home prices continue their hike, albeit more slowly.

Homes are also selling slowly, with the typical U.S. home going under contract after 51 days on the market nationwide during that same period, the longest span for this time of year since 2019.

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Newsweek's reporters and editors used Martyn, our Al assistant, to help produce this story. Learn more about Martyn.

2026-04-11T13:23:45Z