Homebuyers in the U.S. are returning to the market after a slow spring. This follows affordability challenges and economic concerns related to the conflict in Iran. Listing prices have dropped at their most rapid rate in at least nine years, as indicated by current housing data.
According to Realtor.com, in June the national median asking price decreased by 2.5% year-over-year, reaching $430,000. This marks the steepest annual decline since the tracking of data began in 2017. It is also the eighth consecutive month of falling prices.
For buyers who purchased homes at $430,000 in June, with a 20% down payment and average 6.49% mortgage rates, monthly payments are typically $2,172. Compared to homes bought at the median price of $440,950 with rates at 6.82%, buyers save approximately $132 a month.
Price changes varied by region. In the West, median listing prices fell by 4.0% to $600,000. The South experienced a 2.5% decline to $389,000. The Northeast saw a modest 1.0% decrease to $554,500. Meanwhile, prices in the Midwest remained stable at $329,900.
June marked a significant shift. For the first time in over two years, homes for sale stayed on the market for the same duration as they did a year prior, averaging 53 days.
Jake Krimmel, senior economist at Realtor.com, noted the stability seen in June was unexpected earlier in the year. Despite lower prices, affordability issues persist for U.S. homebuyers due to high mortgage rates. The average fixed rate for a 30-year mortgage was 6.43% as of early July.
Although prices remain high compared to pre-pandemic levels, factors such as the Federal Reserve’s decision to maintain interest rates between 3.5% and 3.75% have eased fears of rate hikes. Additionally, home price growth has slowed significantly.
The market has been seller-centric for some time, with any improvement making a difference for buyers. Last month showed a cautious return by buyers, evidenced by a 3.7% year-over-year rise in pending sales—the seventh consecutive month of growth.
Seller behavior shifted, with more willingness to adjust asking prices. Delistings dropped nearly 10% from the previous year, representing about 5% of all active listings—close to their lowest share since last year’s surge.
Active inventory in June reached 1,102,615 listings, marking a 1.9% increase from the prior year. The Northeast saw an 8.5% rise in listings, while the Midwest experienced a 7.3% increase. Inventory in the South remained stable at -0.1%, and the West saw slight growth at 0.3%.
Realtor.com chief economist Danielle Hale stated that sellers are adapting to market conditions. They are setting prices accordingly and buyers are responding, resulting in a balanced market.