SEATTLE — More than one-third of U.S. home sellers reduced their asking prices in February, with the average cut totaling 7.3%, or nearly $41,000, according to a report from Redfin.
The 34% share of sellers lowering prices marked the highest February level on record dating back to 2012, while the average percentage drop was the largest for the month since 2023, Redfin reported.
“Price cuts are on the rise because it is a buyer’s market,” Redfin said in its analysis, citing a growing imbalance between sellers and buyers. The brokerage said there are “hundreds of thousands more home sellers in the market than buyers,” as elevated mortgage rates, high home prices and broader economic uncertainty have discouraged potential purchasers.
Redfin noted that price reductions tend to follow seasonal patterns, with December typically recording the highest share of cuts. Sellers are generally less inclined to reduce prices as the spring homebuying season begins. In six of the past 10 years, May has recorded the lowest share of price cuts, while April has been the lowest in three of those years, including projected trends for 2024 and 2025, according to the firm.
45,000 Homes Relisted
The report also found that sellers are reentering the market after pausing listings during the winter months. Nearly 45,000 homes were relisted in January, the highest number for that month since at least 2016, Redfin said. The influx of inventory could further increase supply and influence both home prices and buyer demand.
Redfin said its analysis does not include sellers who lowered prices before officially listing their homes, meaning the true share of price reductions may be higher than reported.
The Role of Ownership Tenure
Ownership tenure also plays a role in pricing decisions. Less than one-third of sellers who had owned their homes for at least seven years reduced their asking price in February 2026, compared with 34.9% of those who had owned their homes for between two and seven years, according to Redfin data.
Many of the latter group purchased during the pandemic-era housing boom, when home values surged. As prices have softened in some markets, those sellers may be more likely to cut prices to secure a sale, particularly if initial listings were set high in an effort to recoup their investment, the company said.
Regionally, sellers in Texas and Florida were the most likely to reduce prices, largely due to increased competition from new construction, while sellers in the San Francisco Bay Area were the least likely to do so, Redfin reported.
