Increasing Price Reductions

According to Realtor.com’s February Monthly Housing Report, the proportion of homes with price reductions has climbed to 16.8%, up from 14.6% in February of the previous year.

In February 2025, the inventory of newly listed homes increased by 4.2% compared to the same month last year, marking the most active February since 2021.

Insights from Economists

Danielle Hale, Chief Economist at Realtor.com, commented, “While rates remain elevated, we are beginning to see green shoots in the market as sellers grow tired of waiting for significant changes in interest and mortgage rates.” She notes that if the current trends persist, the market may enter a more balanced phase with increased inventory and a deceleration in price growth.

As of February, the median listing price has dipped to $412,000, signaling further potential for affordability.

Regional Trends: Denver Leads in Price Reductions

In specific markets, notable patterns have emerged. For instance, the Denver metro area experienced an 8% increase in price reductions compared to February 2024, identifying it as a prime location where buyers can find more negotiable home prices.

Other cities witnessing significant price reductions include:

• Charlotte, NC: 6.4%
• Tucson, AZ: 6.3%
• Jacksonville, FL: 5.8%
• Las Vegas, NV: 5.7%

Homes on the Market Longer

February 2025 also marked a continuation of a trend where homes are spending more time on the market, with an average of 66 days—a figure that still falls 11 days shorter than pre-pandemic averages from 2017 to 2019.

Both the South and Midwest regions saw the most significant increases in days on the market, averaging an increase of seven and eight days, respectively.

Potential Impacts of Federal Workforce Changes

It’s essential to note that federal workforce reductions may have downstream effects on regional housing markets, particularly those with a high number of government employees. However, current housing conditions seem comparable to broader market trends. Realtor.com research suggests that typical home sellers usually need at least two weeks for preparation before listing, indicating that any potential impact from federal changes may be felt in the near future.