Increased Price Reductions Could Give Buyers More Room to Negotiate This Spring

Rhea-AI Summary

Realtor.com's February Housing Report reveals significant shifts in the housing market. The share of homes with price reductions increased to 16.8% from 14.6% last February, while newly listed homes rose 4.2% year-over-year, marking the highest February activity since 2021.

The median home listing price decreased to $412,000, influenced by more smaller homes entering the market. Properties spent an average of 66 days on the market, marking the 11th consecutive month of extended selling times compared to the previous year, though still moving faster than pre-pandemic levels.

Despite recent federal workforce uncertainties, markets with high government employment concentrations haven't shown notable trends in inventory growth, time on market, or price softening. In the Washington, D.C. area, price reductions increased by 2.3 percentage points year-over-year, ranking 23rd among metros for largest increases in price reductions.

Positive

• New listings increased 4.2% YoY, highest since 2021
• Market showing signs of balancing with increased inventory
• Homes still selling 11 days faster than pre-pandemic average

Negative

• Price reductions increased to 16.8% from 14.6% YoY
• Median listing price declined YoY to $412,000
• Homes spending longer time on market (66 days) compared to 2024

• Newly listed homes increase 4.2% year over year, slightly slower than January's pace
• Homes actively for sale increase 27.5% compared with last year
• Impact of the recent turmoil within the Federal workforce is not yet apparent in housing data

AUSTIN, Texas, Feb. 27, 2025 /PRNewswire/ -- Sellers are increasingly adjusting to the current market conditions, as the share of homes with price reductions grew to 16.8%, up from 14.6% last February, according to the Realtor.com^® February Monthly Housing Report. Sellers increased their activity this February, as newly listed homes rose 4.2% above last year's levels, marking the highest February activity since 2021.

"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," said Danielle Hale, chief economist, Realtor.com^®. "If these trends continue for the next few months, we could see a market that is entering into more balanced terrain, with rising inventory and a potential future slowdown in price growth. While the market does not look like it did before the pandemic, we are moving away from the ultrahigh demand, low inventory period we saw in 2021 and 2022."

In February, the median home listing price dipped below last year's level, to $412,000, and sellers listed their homes at greater rates than last year, with newly listed homes increasing 4.2% year over year. More smaller homes were listed this year, which decreased the median list price relative to last year.

Federal Employment Uncertainty Has Not Yet Reached the Housing Market
Despite a swell of attention, data from this month's report shows that there is no clear connection yet between the markets experiencing the most significant slowdowns and those with a large government workforce. As of February, these markets have not shown notable trends in inventory growth, increasing time on market, softening prices or price reductions. Given the recency of these workforce changes, this is expected at this point in time, and it does not rule out future effects. The health of a local housing market is often tied to the health of the local labor market. Federal workforce reductions could have ripple effects on housing markets with a high concentration of government employees, and the degree of the impact is likely to depend on the health of the private sector in these markets and its ability to provide new opportunities.

For now, housing conditions in these areas are not notably different from other markets. Prior research from Realtor.com^® suggests that the typical home seller takes at least two weeks, and often longer, to prepare a home for sale, so any real impact is likely ahead.

In the Washington, D.C., area, price reductions increased by 2.3 percentage points compared to last February, in line with the national trend, placing it 23rd on the list of metros with the largest increases in price reductions—about the middle of the ranking. The median list price per square foot has also declined year over year, with the metro ranking 21st in terms of price declines. Notably, Washington, D.C.'s share of price reductions has risen each week throughout February, suggesting that broader effects could become more apparent as the spring market unfolds. Buyers and sellers in the region may want to monitor trends closely as the market continues to adjust.

Homes Stay on the Market Longer than 2024, But Still Move Faster than Pre-Pandemic
Homes are staying on the market longer, and February 2025 is the 11th month in a row where homes have spent more time on market compared to the previous year. Homes in February spent on average 66 days on the market, 11 fewer days than the average February between 2017 and 2019. Regionally, the South and Midwest saw the biggest gains in time on market this month, averaging an additional seven and eight days on market, respectively.

February 2025 Housing Metrics – National
Metric	Change over Feb. 2024	Change over Jan. 2019
Median listing price	-0.8% (to $412,000)	+39.2 %
Active listings	+27.5 %	-23.1 %
New listings	+4.2 %	-13.7 %
Median days on market	+5 days (to 66 days)	-9 days
Share of active listings with price reductions	+2.2 percentage points (to 16.8%)	+1.2 percentage points
Median List Price Per Sq.Ft.	+1.2 %	+54.8 %

 

February 2025 Housing Overview of the 50 Largest Metros
Metro Area	Federal Government Employee Share of Total Employment (Dec 2024)	Median Listing Price	Median Listing Price YoY	Median Listing Price per Sq. Ft. YoY	Median Listing Price vs February 2019	Median Listing Price per Sq. Ft. vs February 2019
Atlanta-Sandy Springs-Roswell, Ga.	1.8 %	$398,894	-2.7 %	-1.3 %	24.8 %	55.9 %
Austin-Round Rock-San Marcos, Texas	1.0 %	$499,000	-7.9 %	-5.9 %	42.6 %	54.3 %
Baltimore-Columbia-Towson, Md.	3.7 %	$350,000	6.2 %	2.0 %	16.7 %	28.5 %
Birmingham, Ala.	1.8 %	$285,000	0.3 %	0.5 %	20.3 %	33.6 %
Boston-Cambridge-Newton, Mass.-N.H.	1.4 %	$839,450	-1.8 %	1.6 %	52.8 %	73.6 %
Buffalo-Cheektowaga, N.Y.	2.0 %	$249,974	-0.5 %	1.1 %	37.0 %	52.7 %
Charlotte-Concord-Gastonia, N.C.-S.C.	0.8 %	$419,475	4.9 %	1.3 %	27.2 %	62.2 %
Chicago-Naperville-Elgin, Ill.-Ind.	1.2 %	$349,450	-2.9 %	-0.3 %	11.9 %	30.2 %
Cincinnati, Ohio-Ky.-Ind.	1.4 %	$324,950	-3.7 %	2.2 %	28.0 %	54.6 %
Cleveland, Ohio	2.0 %	$241,725	14.0 %	14.9 %	34.3 %	60.1 %
Columbus, Ohio	1.4 %	$349,700	-7.2 %	1.6 %	29.9 %	59.9 %
Dallas-Fort Worth-Arlington, Texas	1.2 %	$415,950	-4.4 %	-0.6 %	19.7 %	43.6 %
Denver-Aurora-Centennial, Colo.	1.8 %	$572,500	-6.1 %	-3.0 %	14.6 %	44.3 %
Detroit-Warren-Dearborn, Mich.	1.5 %	$239,900	4.6 %	2.9 %	9.1 %	26.9 %
Grand Rapids-Wyoming-Kentwood, Mich.	0.6 %	$384,725	-6.2 %	-2.3 %	39.1 %	52.6 %
Hartford-West Hartford-East Hartford, Conn.	0.9 %	$433,700	6.6 %	12.4 %	48.4 %	61.8 %
Houston-Pasadena-The Woodlands, Texas	1.0 %	$358,000	-0.5 %	-1.0 %	15.5 %	37.6 %
Indianapolis-Carmel-Greenwood, Ind.	1.8 %	$300,000	-5.8 %	0.1 %	16.6 %	52.8 %
Jacksonville, Fla.	2.5 %	$388,098	-5.3 %	-3.3 %	29.4 %	51.1 %
Kansas City, Mo.-Kan.	2.6 %	$379,450	-9.9 %	-0.9 %	21.4 %	44.2 %
Las Vegas-Henderson-North Las Vegas, Nev.	1.3 %	$469,974	1.1 %	3.0 %	51.2 %	58.0 %
Los Angeles-Long Beach-Anaheim, Calif.	0.9 %	$1,119,000	-1.6 %	1.4 %	49.3 %	55.1 %
Louisville/Jefferson County, Ky.-Ind.	1.6 %	$309,950	-0.3 %	1.6 %	20.2 %	44.7 %
Memphis, Tenn.-Miss.-Ark.	2.8 %	$328,050	1.3 %	2.7 %	59.4 %	69.8 %
Miami-Fort Lauderdale-West Palm Beach, Fla.	1.2 %	$515,000	-6.4 %	-5.1 %	32.1 %	48.4 %
Milwaukee-Waukesha, Wis.	1.3 %	$374,950	6.4 %	6.8 %	43.2 %	54.4 %
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	1.1 %	$434,950	0.1 %	-0.6 %	11.6 %	28.4 %
Nashville-Davidson-Murfreesboro-Franklin, Tenn.	1.5 %	$529,450	-5.4 %	-1.0 %	47.4 %	63.3 %
New York-Newark-Jersey City, N.Y.-N.J.	1.1 %	$766,889	1.9 %	-2.4 %	39.6 %	79.4 %
Oklahoma City, Okla.	4.2 %	$314,992	-2.6 %	1.3 %	33.5 %	47.2 %
Orlando-Kissimmee-Sanford, Fla.	1.2 %	$418,950	-3.7 %	-2.4 %	39.0 %	54.2 %
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	1.8 %	$350,000	3.0 %	4.4 %	40.0 %	59.4 %
Phoenix-Mesa-Chandler, Ariz.	1.0 %	$515,000	-4.9 %	-1.0 %	47.2 %	59.3 %
Pittsburgh, Pa.	1.7 %	$229,000	0.9 %	2.3 %	37.1 %	38.0 %
Portland-Vancouver-Hillsboro, Ore.-Wash.	1.4 %	$598,415	-0.3 %	-0.6 %	25.2 %	40.0 %
Providence-Warwick, R.I.-Mass.	1.4 %	$534,900	7.0 %	7.8 %	49.7 %	52.7 %
Raleigh-Cary, N.C.	0.9 %	$435,962	-1.5 %	0.4 %	22.9 %	54.7 %
Richmond, Va.	2.7 %	$429,653	-4.2 %	2.3 %	34.5 %	59.8 %
Riverside-San Bernardino-Ontario, Calif.	1.0 %	$599,450	0.7 %	0.8 %	49.9 %	59.9 %
Sacramento-Roseville-Folsom, Calif.	1.3 %	$619,000	-2.2 %	-1.3 %	34.0 %	39.0 %
San Antonio-New Braunfels, Texas	3.0 %	$327,000	-2.4 %	-2.1 %	14.4 %	36.6 %
San Diego-Chula Vista-Carlsbad, Calif.	3.1 %	$949,995	-4.7 %	-2.0 %	42.0 %	62.4 %
San Francisco-Oakland-Fremont, Calif.	1.2 %	$899,944	-9.0 %	-7.3 %	1.5 %	17.9 %
San Jose-Sunnyvale-Santa Clara, Calif.	1.0 %	$1,304,500	-4.6 %	0.2 %	19.1 %	21.4 %
Seattle-Tacoma-Bellevue, Wash.	1.5 %	$737,400	-3.6 %	0.9 %	24.2 %	54.0 %
St. Louis, Mo.-Ill.	1.8 %	$276,799	-3.7 %	-2.8 %	31.8 %	31.0 %
Tampa-St. Petersburg-Clearwater, Fla.	2.0 %	$399,000	-4.0 %	-4.0 %	47.8 %	64.2 %
Tucson, Ariz.	2.8 %	$396,200	-1.0 %	-1.2 %	38.7 %	55.7 %
Virginia Beach-Chesapeake-Norfolk, Va.-N.C.	7.0 %	$392,500	1.4 %	5.4 %	41.7 %	53.9 %
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.	11.0 %	$579,995	-3.3 %	0.0 %	28.9 %	58.4 %

 

Source: U.S. Bureau of Labor Statistics, State and Area Employment, Hours, and Earnings, Employed and Office of Employment and Unemployment Statistics : Government - Federal Government

Metro Area	Active Listing Count YoY	New Listing Count YoY	Median Days on Market	Median Days on Market Y-Y (Days)	Price– Reduced Share	Price- Reduced Share Y-Y (Percentage Points)
Atlanta-Sandy Springs-Roswell, Ga.	40.9 %	7.1 %	58	16	20.5 %	5.1 pp
Austin-Round Rock-San Marcos, Texas	19.6 %	1.7 %	66	6	20.2 %	-0.6 pp
Baltimore-Columbia-Towson, Md.	30.5 %	3.5 %	41	-3	12.8 %	1.4 pp
Birmingham, Ala.	17.2 %	6.4 %	71	5	15.0 %	1.7 pp
Boston-Cambridge-Newton, Mass.-N.H.	11.7 %	-2.8 %	33	0	9.5 %	1.7 pp
Buffalo-Cheektowaga, N.Y.	25.2 %	-20.0 %	79	13	6.0 %	0.8 pp
Charlotte-Concord-Gastonia, N.C.-S.C.	45.7 %	9.3 %	56	11	20.9 %	6.4 pp
Chicago-Naperville-Elgin, Ill.-Ind.	9.0 %	-0.1 %	43	2	10.4 %	1.5 pp
Cincinnati, Ohio-Ky.-Ind.	25.4 %	9.5 %	50	11	14.0 %	3.1 pp
Cleveland, Ohio	11.7 %	-6.0 %	61	10	13.0 %	1.8 pp
Columbus, Ohio	34.8 %	4.3 %	49	12	18.4 %	2.6 pp
Dallas-Fort Worth-Arlington, Texas	36.1 %	0.2 %	56	9	22.0 %	2.8 pp
Denver-Aurora-Centennial, Colo.	64.4 %	20.1 %	44	10	22.9 %	8.0 pp
Detroit-Warren-Dearborn, Mich.	6.2 %	-8.3 %	52	6	11.1 %	-0.3 pp
Grand Rapids-Wyoming-Kentwood, Mich.	29.8 %	5.2 %	56	5	10.7 %	2.9 pp
Hartford-West Hartford-East Hartford, Conn.	4.4 %	-1.7 %	38	-3	6.0 %	-0.1 pp
Houston-Pasadena-The Woodlands, Texas	28.1 %	8.8 %	54	6	17.6 %	0.9 pp
Indianapolis-Carmel-Greenwood, Ind.	22.8 %	0.3 %	63	4	19.6 %	3.9 pp
Jacksonville, Fla.	36.8 %	-3.7 %	66	16	26.6 %	5.8 pp
Kansas City, Mo.-Kan.	11.4 %	-4.2 %	75	3	10.7 %	-0.1 pp
Las Vegas-Henderson-North Las Vegas, Nev.	60.8 %	19.7 %	47	8	19.2 %	5.7 pp
Los Angeles-Long Beach-Anaheim, Calif.	43.0 %	27.1 %	39	-1	11.8 %	2.9 pp
Louisville/Jefferson County, Ky.-Ind.	19.8 %	-3.1 %	51	4	17.0 %	2.6 pp
Memphis, Tenn.-Miss.-Ark.	29.1 %	-2.0 %	71	4	19.2 %	1.0 pp
Miami-Fort Lauderdale-West Palm Beach, Fla.	39.2 %	7.1 %	74	12	20.6 %	1.0 pp
Milwaukee-Waukesha, Wis.	11.1 %	24.3 %	36	-1	11.3 %	1.2 pp
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	8.8 %	-6.3 %	41	4	9.8 %	1.3 pp
Nashville-Davidson-Murfreesboro-Franklin, Tenn.	30.8 %	12.9 %	55	16	16.0 %	-1.4 pp
New York-Newark-Jersey City, N.Y.-N.J.	1.0 %	0.0 %	68	-1	5.9 %	-0.6 pp
Oklahoma City, Okla.	34.2 %	5.1 %	52	-4	17.0 %	-1.1 pp
Orlando-Kissimmee-Sanford, Fla.	43.8 %	17.1 %	74	10	23.3 %	3.6 pp
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	14.6 %	-3.4 %	52	-7	11.8 %	0.8 pp
Phoenix-Mesa-Chandler, Ariz.	45.3 %	14.7 %	56	11	30.2 %	5.2 pp
Pittsburgh, Pa.	13.7 %	-10.1 %	86	9	14.2 %	-0.2 pp
Portland-Vancouver-Hillsboro, Ore.-Wash.	24.8 %	-2.0 %	75	21	22.5 %	3.5 pp
Providence-Warwick, R.I.-Mass.	20.2 %	-3.0 %	39	1	8.7 %	1.9 pp
Raleigh-Cary, N.C.	41.6 %	6.2 %	53	9	15.7 %	3.5 pp
Richmond, Va.	16.9 %	-5.1 %	49	1	10.5 %	1.6 pp
Riverside-San Bernardino-Ontario, Calif.	47.2 %	17.8 %	60	10	17.0 %	4.0 pp
Sacramento-Roseville-Folsom, Calif.	45.4 %	20.9 %	39	0	13.4 %	3.0 pp
San Antonio-New Braunfels, Texas	15.1 %	0.2 %	76	8	24.7 %	3.5 pp
San Diego-Chula Vista-Carlsbad, Calif.	61.3 %	24.3 %	34	1	14.6 %	4.0 pp
San Francisco-Oakland-Fremont, Calif.	34.0 %	27.2 %	30	2	9.4 %	1.9 pp
San Jose-Sunnyvale-Santa Clara, Calif.	46.1 %	28.0 %	22	-1	7.3 %	2.2 pp
Seattle-Tacoma-Bellevue, Wash.	40.8 %	4.2 %	35	3	11.2 %	3.9 pp
St. Louis, Mo.-Ill.	13.8 %	3.8 %	53	5	12.7 %	2.2 pp
Tampa-St. Petersburg-Clearwater, Fla.	28.9 %	3.9 %	66	9	27.5 %	2.0 pp
Tucson, Ariz.	47.4 %	8.9 %	52	8	24.1 %	6.3 pp
Virginia Beach-Chesapeake-Norfolk, Va.-N.C.	27.2 %	1.9 %	39	3	16.0 %	1.0 pp
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.	41.0 %	8.5 %	34	-3	10.8 %	2.3 pp

 

Methodology
Realtor.com^® housing data as of February 2025. Listings include the active inventory of existing single-family homes and condos/townhomes/row homes/co-ops for the given level of geography on Realtor.com^®; new construction is excluded unless listed via an MLS that provides listing data to Realtor.com^®. Realtor.com^® data history goes back to July 2016. The 50 largest U.S. metropolitan areas as defined by the Office of Management and Budget (OMB-202301) and Claritas 2025 estimates of household counts. With the release of its January 2025 housing trends report, Realtor.com^® has restated data points for some previous months. As a result of these changes, some of the data released since January 2025 will not be directly comparable with previous data releases (files downloaded before January 2025) and Realtor.com^® economics research reports.

About Realtor.com^®
Realtor.com^® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com^® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media contact: Mallory Micetich, press@realtor.com

View original content:https://www.prnewswire.com/news-releases/increased-price-reductions-could-give-buyers-more-room-to-negotiate-this-spring-302386752.html

SOURCE Realtor.com

FAQ

What is the current median home listing price according to Realtor.com's February report?

The median home listing price dropped to $412,000, influenced by an increase in smaller homes being listed.

How long are homes staying on the market compared to last year?

Homes spent an average of 66 days on the market, marking the 11th consecutive month of increased time on market compared to the previous year.

What percentage of homes had price reductions in February 2025?

16.8% of homes had price reductions, up from 14.6% in February 2024.

How has new home listing activity changed compared to last year?

Newly listed homes increased by 4.2% year-over-year, reaching the highest February activity level since 2021.

How has the federal workforce uncertainty affected housing markets in government-heavy areas?

As of February 2025, markets with high government employment haven't shown notable trends in inventory growth, time on market, or price softening.