Active housing listings increased 7.9% year-over-year in February 2026, according to Realtor.com, marking the 28th consecutive month of inventory gains. As of March 12, active listings were running 6.2% above 2025 levels. The improvement gives buyers more options, reduces bidding war pressure, and shifts negotiating power away from sellers for the first time since the pandemic housing frenzy.
However, context matters. Despite nearly two and a half years of inventory growth, current active listings remain 16.8% below the typical levels seen during 2017-2019. The Northeast and Midwest still face significant shortfalls. The South and West are closer to pre-pandemic norms, with Sun Belt cities like Austin, Phoenix, and Denver now firmly in buyer's market territory.
Spring 2026 Housing Market Numbers
- Active listings: up 7.9% year-over-year in February
- 28th consecutive month of inventory gains
- Inventory still 16.8% below 2017-2019 norms nationally
- New listings: up 1.5% year-over-year
- Median days on market: 58 (up from 42 a year ago)
- Housing affordability: improved for 8th consecutive month
Where Inventory Is Growing Fastest
Sun Belt Markets
Austin, Texas, leads with 7.8 months of supply, nearly double the balanced market threshold. Phoenix sits at 5.9 months. Denver has 5.1 months. These cities experienced 30-40% price appreciation during 2020-2022, drawing both homebuyers and investors. The correction is normalizing prices toward pre-pandemic trends.
Florida
Florida's inventory surge differs from other Sun Belt states. Rising insurance costs (up 27% year-over-year in many counties) and HOA fee increases are motivating sellers to list properties that have become too expensive to maintain. Cape Coral, Jacksonville, and Tampa have all seen inventory rise above 6 months of supply.
Pacific Northwest
Seattle and Portland have seen moderate inventory increases of 15-20% year-over-year, driven by tech sector layoffs and return-to-office policies that reduced demand from remote workers. Median days on market in Seattle reached 48, up from 21 a year ago.
"More inventory means more choice, longer decision timeframes, and better negotiating positions for buyers," said Danielle Hale, chief economist at Realtor.com. "But buyers in the Northeast and parts of the Midwest are still competing in tight markets. The recovery is happening, but it is uneven."
What the Inventory Increase Means for Prices
Nationally, home prices have decelerated to 0.7% annual appreciation, the slowest pace since 2012. In high-inventory markets like Austin and Phoenix, prices are flat to slightly negative year-over-year. In low-inventory markets like the Northeast corridor, prices continue to appreciate 3-5% annually because demand still outstrips supply.
The relationship between inventory and prices is straightforward: when months of supply exceeds 6, prices tend to stabilize or decline. Below 4 months, prices tend to rise. The national average of 4.1 months sits in the neutral zone, with significant local variation driving market-by-market conditions.
Spring Buying Strategies
Use the inventory increase to your advantage. Tour more homes before making an offer. Request seller concessions on closing costs. Include inspection and financing contingencies that were routinely waived during the seller's market of 2021-2022. Negotiate repairs after inspection. Homes that have been listed for 30+ days without a price reduction signal motivated sellers who may accept offers 3-5% below asking price.
Get pre-approved before you begin house hunting seriously. In a market with rising inventory, being pre-approved still signals seriousness to sellers and gives you an edge over buyers who have not prepared their financing.
