Home listing prices in the United States are declining at the fastest pace in at least nine years, providing a long-awaited affordability boost for buyers in a housing market that has been squeezed by elevated mortgage rates and soaring prices.
The national median asking price fell 2.5% in June compared with a year ago, dropping to $430,000, according to the latest Realtor.com monthly housing market trends report. June marked the eighth consecutive month of price decreases, and the 2.5% decline was the deepest annual drop 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, as Fox Business reported.
For a buyer purchasing 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 approximately $132 less per month and more than $1,500 less per year than what the typical buyer owed in June 2025, when the median price was $440,950 and the average mortgage rate was 6.82%.
Pending home sales rose 3.7% year over year through June, marking the seventh consecutive month of growth. The share of listings with a price cut shrank by 1.9 percentage points to 18.8%, suggesting sellers are adjusting prices upfront rather than reducing them after listing. New listings increased 2.4% from a year ago, indicating sellers are increasingly willing to move off the sidelines despite accepting lower prices.
“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,” said Realtor.com senior economist Jake Krimmel.
The housing market stabilization comes as Federal Reserve policymakers unanimously held the benchmark federal funds rate steady at 3.5% to 3.75% amid elevated inflation readings, according to Fox Business. Mortgage rates have settled around 6.5%, providing more certainty for both buyers and sellers.
However, the affordability picture remains challenging by historical standards. The income needed to afford a median-priced home has nearly doubled since 2020, and one in three adults under 35 now lives with their parents as housing costs continue to outpace wage growth. While the current price declines offer relief, they represent a modest correction rather than a fundamental shift in housing affordability.
