A record share of home sellers are slashing prices as the housing market increasingly favors buyers, according to new analysis from Redfin.
According to the report, 34.2% of February home sellers lowered their list price—the highest February share in records dating back to 2012, up from 31.5% a year earlier. The data reveals a market where sellers face mounting pressure to adjust expectations as buyer demand remains constrained.
The depth of price reductions is also widening. According to the analysis, sellers who cut prices reduced them by an average of $40,915, or 7.3%—the highest February percentage since 2023. When averaging across all February sellers, the mean price cut reached $13,463, or 2.4%—the highest February percentage on record.
The report attributes this shift to a clear buyer’s market dynamic.
According to the analysis, there are hundreds of thousands more home sellers in the market than buyers because buyers have been spooked by high mortgage rates, high prices and economic uncertainty. When sellers outnumber buyers significantly, buyers can often negotiate on price because they have many options to choose from.
Despite grim February numbers, sellers have reason to look ahead to spring.
According to Redfin’s analysis, May has been the month with the lowest share of price cuts in six of the past 10 years, with April posting the lowest share in three of the past 10 years.
According to a Redfin Premier agent in Boston, many sellers who couldn’t sell last year chose to delist rather than cut prices, planning to relist in spring when market conditions are more favorable. The report notes that nearly 45,000 U.S. homes delisted last year were relisted for sale in January 2026—the highest January figure in records dating back to 2016.
Seller tenure plays a significant role in price-cut likelihood. According to the report, less than one-third (31.8%) of February sellers who had been in their home for at least seven years lowered their price. That contrasts sharply with 34.9% of sellers who had been in their home for two to seven years, and 37.4% of those in their homes for zero to two years.
According to the analysis, many recent homebuyers purchased during the pandemic’s peak when prices were surging, and prices have since declined in many areas, putting some sellers at risk of being underwater on their mortgages.
Geographic variation in price cuts is stark. According to Redfin’s metro-level data, San Antonio led all major markets with 57.9% of February home sellers lowering their list price, followed by Austin at 55.2%, Dallas at 47.3%, Tampa at 45.9% and Fort Lauderdale at 44.9%.
The report attributes the higher rates in these markets to strong new housing supply and natural disaster pressures.
According to the analysis, Texas and Florida have been building more homes than other states, giving buyers greater bargaining power. Additionally, Florida sellers are contending with intensifying natural disasters, soaring insurance premiums and rising condo HOA fees, which have prompted some homeowners to leave.
In sharp contrast, Bay Area sellers are among the least likely to cut prices.
According to the report, San Francisco recorded the lowest share at just 7.4% of February home sales including price cuts, followed by San Jose, California, at 11.1%; Newark, New Jersey, at 12.9%; Oakland, California, at 14.3%; and Seattle, Washington, at 18.4%.
Bay Area home sellers, according to the analysis, typically underprice their homes intentionally to generate bidding wars, reducing the need for price cuts.
The data suggests that timing and market location will be critical factors for sellers in coming months. According to Redfin’s findings, sellers who can afford to wait for spring may see better outcomes, while those with recent purchase dates or located in supply-heavy markets face more pronounced headwinds.
