A Record 34% of February Home Sellers Cut Their List Price, Pending Home Sales Post Biggest Decline in 3 Months

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A Record 34% of February Home Sellers Cut Their List Price

More than one-third (34.2%) of February home sellers lowered their list price. That’s up from 31.5% a year earlier and represents the highest February share in records dating back to 2012.

Fed minutes show willingness to consider interest rate increases

Some Federal Reserve officials wanted to keep interest rate increases on the table, given the stubborn inflation that was set to be amplified by the Iran war, according to minutes from the central bank’s March 17-18 policy meeting, released Wednesday.

Pending Home Sales Post Biggest Decline in 3 Months as High Rates, Iran War Chill Market

Easter weekend also sidelined many would-be buyers. The Iran war ceasefire announced Tuesday could ease mortgage rates.

U.S. pending home sales fell 2.4% year over year during the four weeks ending April 5, the biggest decline in three months. Sales fell most in Providence, RI (-15.5%), Houston (-15.4%) and New York (-15.3%). They increased most in West Palm Beach, FL (20.9%), San Francisco (16.7%) and San Jose, CA (11.4%).

Homes are selling slowly, too: The typical home that went under contract did so in 51 days nationwide, the longest span for this time of year since 2019.

Home sellers continued to cut prices in February 2026, with 15.5–19% of active listings seeing reductions (elevated but not a record 34.2%). The average price cut was in the $20,000–$25,000 range in many reports, though some markets saw larger discounts. Buyers are gaining more negotiating power as inventory rises and homes sit longer, shifting the market toward a more balanced or buyer-friendly environment in many areas.