Home listing prices across the United States are falling at the fastest pace in at least nine years, according to new data that suggests the housing market may be turning in favor of buyers — including in the notoriously expensive Los Angeles market.
The national median asking price fell 2.5% in June compared with a year ago, declining 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% drop was the deepest annual decline in the data set’s history, which dates 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.
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 — approximately $132 less per month and more than $1,500 less per year compared to June 2025, when the median price was $440,950 and the average rate was 6.82%.
The relief comes as the Federal Reserve held its benchmark rate steady at 3.5% to 3.75% amid elevated inflation readings. Fox Business reported that pending home sales rose 3.7% year-over-year through June, marking the seventh consecutive month of growth.
“It was a no-news-is-good-news June,” said Realtor.com senior economist Jake Krimmel. “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.”
In Los Angeles, where the median home price far exceeds the national figure, even modest percentage declines can translate to meaningful savings. Southern California’s housing market has been under pressure from high mortgage rates and persistent affordability challenges that have pushed many potential buyers to the sidelines.
New listings increased 2.4% from a year ago, suggesting sellers are increasingly willing to move off the sidelines despite accepting lower prices. The typical home spent 53 days on the market, unchanged from a year ago, indicating a balanced market rather than a sharp downturn.
The share of listings with a price cut shrank by 1.9 percentage points to 18.8%, suggesting that sellers who price correctly from the start are finding buyers without needing to reduce further.
In Los Angeles County, where the median home price has consistently ranked among the highest in the nation, the national trend of declining asking prices could provide a modest opening for buyers who have been priced out of the market. However, LA’s housing supply constraints — including limited buildable land, restrictive zoning, and lengthy permitting processes — mean that price declines in the region may be less pronounced than the national average.
Southern California’s housing market has been particularly sensitive to mortgage rate changes. When rates spiked above 7% in 2024, transaction volumes fell sharply across LA, Orange, and San Diego counties. The current stabilization of rates around 6.5% has brought some buyers back to the market, but affordability remains a significant challenge for many households.
Real estate analysts note that the current market dynamics represent a shift rather than a crash. The combination of slowing price growth, stable time on market, and rising pending sales suggests a normalization of housing market conditions after years of frenzied competition. For Los Angeles buyers who have been waiting on the sidelines, the gradual improvement in affordability may represent the best opportunity in years to enter the market, though significant barriers remain.
