Business
Redfin Reports Home Prices Start Year Up Just 1% as Buyer’s Market Keeps Growth in Check
SEATTLE, February 19, 2026--The median U.S. home sale price rose 1.1% year over year in January to $422,921 as the strongest buyer’s market in recent history kept a lid on price growth. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket.
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[{"type":"text","content":"Pending home sales fell to the lowest level since 2023 and existing-home sales dropped the most since 2022 as elevated housing costs curbed homebuyer demand","length":156,"tagName":"p","attribs":{}},{"type":"text","content":"SEATTLE, February 19, 2026--(BUSINESS WIRE)--The median U.S. home sale price rose 1.1% year over year in January to $422,921 as the strongest buyer’s market in recent history kept a lid on price growth. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket.","length":293,"tagName":"p"},{"type":"text","content":"Year-over-year price growth has hovered below 2% for the past 10 months—a far cry from the double-digit gains of the pandemic homebuying frenzy.","length":144,"tagName":"p"},{"type":"text","content":""Home prices grew so fast for so long that a lot of buyers got shut out of the market, which is now causing price growth to cool," said Redfin Senior Economist Asad Khan. "With far more homes for sale than people who want to buy them, the buyers who are in the market have the power to negotiate on price, which is keeping price growth in check."","length":366,"tagName":"p"},{"type":"text","content":"When sellers outnumber buyers, buyers typically hold the negotiating power because they have a lot of options to choose from. That’s why a market with a lot more sellers than buyers is considered a buyer’s market. Of course, it’s only a buyer’s market for those who can afford to buy.","length":284,"tagName":"p"},{"type":"text","content":"The typical home that sold in January went for 2.1% less than its final list price—the biggest January discount since 2023. And just 20.8% of homes sold for more than their final list price—the lowest January share since 2020.","length":226,"tagName":"p"},{"type":"text","content":"Redfin economists predicted in December that housing affordability will improve in 2026 as income growth outpaces home-price growth. Wages climbed 3.7% year over year in January—more than triple the gain in prices. A drop in mortgage rates has also boosted purchasing power. The average 30-year fixed mortgage rate fell to 6.1% in January—the lowest level since 2022.","length":367,"tagName":"p"},{"type":"text","content":"Home Sales Sink as Many Buyers Remain Priced Out of the Market","length":62,"tagName":"p"},{"type":"text","content":"While home-p...