Decline in Pending Home Sales: Redfin Reports Mixed Signals in the U.S. Housing Market

In a recent press release dated February 12, 2026, Redfin, a real estate brokerage powered by Rocket Companies Inc., reported a notable decline in pending home sales across the United States. The data reveals a year-over-year drop of 5.1% in pending sales, marking the most significant decline seen in over a year. This downturn reflects broader trends affecting the housing market and raises questions about the future of homebuying in the current economic environment.

While pending home sales fell across the majority of the U.S., there were some notable exceptions. Only five out of the 50 most populous metropolitan areas reported an increase in pending sales. The standout performers included:

In stark contrast, areas like Oakland, CA, and Minneapolis, MN experienced steep declines, with pending sales plummeting by 21.6% and 17.5%, respectively. This discrepancy highlights the varying dynamics within local markets, influenced by factors such as economic conditions, job security, and regional demand.

The press release also indicated that homes are taking longer to sell, with the typical U.S. home now spending 66 days on the market before going under contract. This period marks a week longer than the same time last year and is the longest since early 2019. The increase in the time taken to sell homes suggests a shift towards a buyer's market, with 5.5 months of supply available—the most in seven years. This metric indicates how long it would take for all current listings to be sold based on the current sales pace.

Several factors are contributing to the decline in homebuying demand. The median sale price has risen by 1.2% year-over-year, and while mortgage rates have decreased from their recent peak, they remain significantly higher than the lows observed during the pandemic. Concern regarding job security has also led many potential buyers to hesitate. Additionally, recent severe winter weather has kept some house hunters home, further dampening demand.

Interestingly, new listings have also seen a slight decrease of 1.8% year-over-year, while total active listings have declined by about 1%, the first such drop since 2023. This reduced inventory could further influence market dynamics as fewer options may lead to increased competition among buyers when conditions improve.

Despite the challenges, there are several positive indicators for buyers in the current market. Although new listings are down, buyers retain significant leverage due to the high inventory levels. Many home sellers are willing to negotiate, leading to some properties selling below their asking prices. Furthermore, the median monthly housing payment has decreased by 3.8% year-over-year, and with wage growth at approximately 4%, affordability appears to be improving for some buyers.

Redfin agents have noted a resurgence in home tours, indicating that while the overall data may reflect a slowdown, serious house hunters are re-entering the market. Sue Dhillon, a Redfin Premier agent in Seattle, remarked, “It’s still a buyer’s market, but it might not be for long,” suggesting that potential buyers should act quickly before competition increases.

Here are some key metrics from the report that illustrate the current state of the housing market:

These metrics provide insight into the current landscape of the real estate market, showcasing both the challenges and opportunities present for buyers and sellers alike.

As Rocket Companies Inc. and its subsidiary Redfin navigate the complexities of the housing market, the latest data reveal a mixed bag of challenges and opportunities. While recent declines in pending home sales indicate cautious consumer sentiment, there are signs of potential recovery as buyers reassess their options. The coming months will be critical in determining whether this buyer's market will transition into a more balanced or competitive environment as we move toward the spring selling season.