1. 16.8% of homes saw price reductions, up from 14.6% last year. 2. Newly listed homes rose 4.2%, highest February activity since 2021. 3. Median home listing price decreased to $412,000, lower than last year. 4. Homes are staying on the market longer, averaging 66 days. 5. Washington D.C. shows weekly increases in price reductions.
Current market adjustments indicate a stabilization rather than bullish conditions. Historical adjustments in similar market cycles show no immediate impact on stock prices.
The report reflects broader market conditions impacting NWS’s real estate segment but indicates stabilization rather than growth.
Current housing trends may take time to influence the market significantly, as indicated by previous price cycles.
/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.
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 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.
| 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 % |
| 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 % |
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
Media contact: Mallory Micetich, mallory@realtor.com
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.