In a significant shift for the U.S. housing market, a record 34% of home sellers cut their asking price in February 2026, according to data from real estate brokerage Redfin. This marks the highest share of price cuts for the month of February in at least six years, surpassing the previous record of 31% set in February 2023.
The trend is attributed to a combination of high mortgage rates and a growing number of homes for sale, which is giving buyers more negotiating power. The median U.S. home-sale price in February was $412,778, a 5.1% increase from a year earlier, but the pace of price growth has slowed considerably from the double-digit gains seen in recent years.
"Sellers are finally becoming more willing to lower their prices to attract buyers in this higher-rate environment," said a Redfin market analyst. The data indicates a market moving toward greater balance, though affordability remains a persistent challenge for many prospective homeowners due to elevated borrowing costs.
