Record decline in home asking prices offers buyers an affordability boost
Home listing prices are declining at the fastest pace in at least nine years as sellers adjust to a slower market and look to attract buyers.
The national median asking price fell 2.5% in June compared with a year ago, declining to $430,000 based on the latest data from the Realtor.com monthly housing market trends report.
June marked the eighth consecutive month of price decreases, and the 2.5% asking price drop was the deepest annual decline in the history of the data set, which dates back to 2017.
"Sellers are reading market conditions and are pricing accordingly from the start rather than listing high and cutting later, and buyers are taking note and making bids," said Realtor.com chief economist Danielle Hale.
HOUSING AFFORDABILITY UNLIKELY TO RETURN TO MORE FAVORABLE LEVELS OF THE PAST, ECONOMIST SAYS
The report found that for a buyer who bought a $430,000 home in June with a 20% down payment and an average mortgage rate of 6.49%, the typical monthly payment was $2,172.
That figure is about $132 less per month, and more than $1,500 less per year, than what the typical buyer owed in June 2025, which had a median price of $440,950 and an average mortgage rate of 6.82%.
Another notable metric suggesting the affordability pressures in the housing market are easing is that the typical home listed for sale is spending the same amount of time on the market as it did a year ago, holding steady at 53 days.
INCOME NEEDED TO AFFORD A MEDIAN-PRICED HOME HAS NEARLY DOUBLED SINCE 2020, REPORT FINDS
Pending home sales also rose 3.7% year over year through June, which marked the seventh consecutive month of growth despite the share of listings with a price cut shrinking by 1.9 percentage points to 18.8%.
Other economic indicators were little changed in June, as mortgage rates settled around 6.5% and Federal Reserve policymakers unanimously held the benchmark federal funds rate steady at its current range of 3.5% to 3.75% amid elevated inflation readings.
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"It was a no-news-is-good-news June," said Realtor.com senior economist Jake Krimmel. "While it may seem obvious now, this was far from a foregone conclusion just a few months ago."
Sellers have also increasingly moved off the sidelines amid the price declines in a sign of confidence that they'll find a willing buyer, as new listings increased 2.4% from a year ago.
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"Unlike last year, sellers are willing to take a slight haircut to move, and buyers get a little relief on price to offset rates that settled higher than hoped," Krimmel said.
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