The median U.S. home-sale price rose 3.7% year over year for the four weeks ending February 16, marking the slowest increase since September. According to Redfin, the average 30-year mortgage rate dipped to 6.87%, the lowest level so far this year.
Total housing inventory increased to five months of supply, up from 4.1 months a year ago, the highest since early 2019, except for a brief peak in late January. New listings also climbed 4.2% year over year, reaching a three-year high for this period. Meanwhile, buyers have gained leverage, with the typical home selling for 2% less than its asking price – the biggest discount in two years.
Market conditions vary by location. Florida's coastal markets favor buyers, while sellers still dominate in parts of the West Coast and Northeast. In Los Angeles, new listings surged 21.9% following recent wildfires, while pending sales climbed 7.4%, one of only seven major metros where sales increased.
Despite these shifts, competition persists for well-priced homes in desirable locations. Properties in top school districts and in move-in-ready condition continue to attract multiple offers, often selling for tens of thousands over asking. As buyer demand rises ahead of spring, these favorable conditions may be short-lived.
