The US housing market is experiencing a shift in power dynamics, with national active listings rising by 7.9% between February 28, 2025, and February 28, 2026, indicating that homebuyers are gaining leverage in many parts of the country. According to Realtor.com, the total number of active listings in February 2026 was 914,860, up from 847,825 in February 2025.
The pace of growth in national active inventory has slowed in recent months, with some seller’s markets turning into balanced markets and more balanced markets turning into buyer’s markets. The Midwest and Northeast regions still have relatively tight inventory levels, while the Sun Belt and Mountain West regions have seen active inventory levels near or surpass pre-pandemic 2019 levels. Nine states, including Arizona, Colorado, Florida, Idaho, Nebraska, Tennessee, Texas, Utah, and Washington, were above pre-pandemic 2019 active inventory levels at the end of February 2026.
The softening trend in the housing market has been accelerated by an abundance of new home supply in the Sun Belt, with builders offering lower prices or affordability incentives to maintain sales. This has put upward pressure on resale inventory, with some buyers opting for new homes with more favorable deals. Nationally aggregated home prices are currently pretty close to flat, year over year, with some areas experiencing price declines and others seeing year-over-year appreciation.
Looking ahead, the coming months will be crucial in understanding the trajectory of the housing market, particularly in states like Florida, which has entered its seasonal window when active inventory typically begins to rise again. As the market continues to evolve, it will be essential to monitor active listings and months of supply to gauge home price momentum and identify areas of strength and weakness.
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