Over One-Third of US Home Sellers Cut Prices in February, Highest Share Since 2012

More than one-third of home sellers in the United States cut their asking prices in February, according to data from Redfin. This occurred amid increased inventory and a shift toward a buyer's market, with more sellers than buyers nationwide. Sellers in southern metros like San Antonio and Austin saw the highest rates of price cuts.

The US housing market has shifted to a buyer's market over the past year, with the number of for-sale homes increasing while demand has decreased. This imbalance has allowed buyers, particularly in areas with the largest inventory growth, to negotiate lower prices.

sellers in southern metropolitan areas were the most likely to cut prices, due to significant inventory increases in recent years, especially in Florida and Texas. In contrast, sellers in western and northeastern markets cut prices less often, where demand remains strong and inventory is limited.

typically precedes the spring buying season, when sellers often avoid price cuts due to heightened competition among buyers.

However, Redfin data indicates that demand in 2024 has not increased sufficiently to shift leverage back to sellers. This trend affects homeowners planning to sell, as they adjust strategies to attract buyers in a market with more options.