34.2% of US home sellers cut list prices in February with average reductions of $40,915 — sharpest February discounting pattern in over a decade

US home sellers are increasingly cutting prices:

A record 34.2% of home sellers lowered their list price in February, the highest for any February since records began in 2012.

Since 2022, the percentage of sellers cutting prices has more than tripled.

Sellers who cut prices cut by an average of $40,915, or -7.3%, the highest February percentage since 2023 and the 2nd-highest since 2017.

Among all sellers, the average price was reduced by $13,463, or -2.4%, the highest for this month on record.

Home sellers in Texas and Florida led the price cuts, while sellers in the Bay Area cut the least.

Elevated mortgage rates and rising housing inventory continue to weaken seller pricing power across the country.

The US housing market is increasingly favoring buyers.



Active inventory back to 2020 levels?


https://fred.stlouisfed.org/series/ACTLISCOUUS