Record 34% of Home Sellers Cut Prices in February—Is the Market Tipping Toward Buyers?

Price Cuts Surge to All-Time February High, Signaling Buyer’s Market Conditions

More than one-third (34.2%) of February home sellers reduced their list price—a record for this time of year and up from 31.5% last year, according to new data from Redfin, now part of Rocket Companies (NYSE:RKT). This is the highest February percentage since these records began in 2012. Price cuts are spiking as sellers compete for increasingly selective buyers, amid elevated mortgage rates and continued economic uncertainty.

Average Reduction Hits $40,915, With Texas and Florida Leading Price Drops

The typical seller slashed their price by $40,915 or 7.3%. Average price cuts across all sellers (not just those who adjusted) clocked in at $13,463—2.4% of list price. Texas and Florida topped the list for most aggressive discounting: in cities like San Antonio and Austin, over 55% of sellers lowered prices. In contrast, the Bay Area saw far fewer reductions, reflecting local market strategies like underpricing to stimulate competition and bidding wars.

Spring Offers Sellers Better Odds—But Recent Buyers Face Higher Risk of Price Cuts

Redfin data highlights that sellers in the spring—just as the home-buying season heats up—are less likely to face price cuts compared to those who sell in winter. In six of the last ten years, May has been the safest month for avoiding price reductions, with April following close behind. This suggests that sellers who time the market stand to benefit most, while those who bought recently and need to sell quickly are at greater risk.

Sellers with less than two years in their home cut prices at a rate of 37.4%, compared to just 31.8% for those who have lived in their homes over seven years. This trend is tied to buyers from the pandemic-era price highs, many of whom are now confronting market realities as home values in some regions soften.

Record Relistings Suggest Sellers Betting on Spring Recovery

Nearly 45,000 homes that delisted in 2025 came back onto the U.S. market in January 2026—the biggest January relisting figure since 2016. Redfin notes that relisted homes were not counted toward February’s price-cut data, implying the true scope of price adjustments may be even larger than reported.

Takeaway: Buyers Hold the Cards, But Timing Remains Critical

With sellers now outnumbering buyers and market competition rising, buyers may find more leverage to negotiate. For sellers, waiting until spring or carefully considering pricing strategy could be crucial. As economic factors and dynamic regional trends continue to play out, both sides of the transaction have plenty to watch this season.

For further metro-level data and Redfin’s full analysis, visit Redfin’s report.

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