Typical Home Now Takes 66 Days to Sell: Slowest February Since 2016

Homes across the U.S. are taking longer to sell, showing a clear shift in buyer behavior early in 2026. A recent Redfin report found that the typical home that went under contract in February stayed on the market for 66 days. That is eight days longer than the same time last year and marks the slowest February pace seen since 2016.

The slowdown comes at a time when many expected activity to pick up. Mortgage rates briefly dropped below 6%, which gave buyers some hope. In fact, some buyers were able to lock in rates as low as 5.6%. However, that relief did not last long. Rates moved higher again, and global concerns such as geopolitical tension and rising fuel costs have made many buyers more cautious.

According to Redfin, this mix of uncertainty is causing people to delay decisions, even as the spring season approaches a time that is usually the busiest for home sales.

Buyers Gain More Control in the Market

Another key factor behind the slower pace is the shift toward a buyer’s market. Sellers now outnumber buyers by more than 40%, giving those still active in the market more room to negotiate.

This change is already visible in pricing trends. In February, buyers paid about 1.8% less than the final list price on average. This is the biggest discount seen for this time of year since 2023. It also shows that buyers are no longer rushing into deals and are instead taking their time to find better terms.

Home Prices Still Rising, but Slowly

Even with the slowdown, home prices have not dropped significantly on a national level. The median home sale price reached $429,259 in February, which is 0.9% higher than a year ago.

However, this growth is much smaller compared to the sharp increases seen during the pandemic years. The market is no longer seeing rapid price jumps, and instead, prices are moving at a more stable and slower pace.

Sales Activity Remains Soft

Both buying and selling activity showed signs of weakness during the month. Pending home sales declined by 0.8% compared to January, while new listings also fell by 1.2%.

That said, there are early signs that conditions may shift soon. Some homeowners who pulled their listings in 2025 are now considering putting their properties back on the market. With spring approaching, more sellers may test demand again, hoping for better conditions.

Local Markets Show Mixed Trends

Housing trends varied widely across major metro areas:

• Price Growth: St. Louis saw the biggest yearly increase at 7.6%, followed by Newark and Kansas City. On the other hand, prices dropped most in Oakland, Austin, and Denver.
• Pending Sales: San Jose, Milwaukee, and Portland recorded the strongest gains, while Nassau County and Oakland saw the biggest declines.
• Closed Sales: Kansas City led with a 12.3% increase, while Providence and Newark experienced sharp drops.
• New Listings: Kansas City and Milwaukee saw strong growth, while Nassau County and Providence had steep declines.
• Active Listings: Seattle, Detroit, and Washington, D.C. had the largest increases, while Jacksonville and San Francisco saw declines.

Homes Sitting Longer in Many Cities

The time it takes to sell a home increased in most cities. San Antonio recorded the biggest jump, with homes taking 109 days to go under contract 28 days longer than last year. Las Vegas and Charlotte also saw notable increases.

San Francisco stood out as the only major market where homes sold slightly faster than before.

More Homes Selling Below List Price

While some markets still see strong demand, fewer homes are selling above asking price overall. San Francisco had the highest share, with nearly 62% of homes selling above list price. San Jose and Oakland followed closely.

In contrast, cities like West Palm Beach, Miami, and Houston had very low shares of homes selling above asking price, showing weaker demand in those areas.

What This Means Going Forward

The housing market in early 2026 is showing signs of balance after years of rapid growth. Buyers are more careful, sellers are adjusting expectations, and homes are staying on the market longer.

If mortgage rates stabilize and economic uncertainty eases, activity could improve in the coming months. Until then, buyers are likely to remain in control, taking their time and negotiating better deals. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.