The median home price is over $400,000, putting it out of reach for many buyers

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U.S. median home-sale price reaches a record $400,125 amid declining mortgage rates
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Buyer demand remains resilient despite a slight dip in new listings and pending sales
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Touring activity and mortgage applications climb, offering signs of market stabilization
The median U.S. home-sale price surged to a record-breaking $400,125 during the four weeks ending June 29, according to a new housing market update from real estate brokerage Redfin. While the new high underscores ongoing market pressures, prospective homebuyers may find some solace as mortgage rates continue their downward trend.
Mortgage rates have eased in recent weeks, helping offset the impact of higher home prices. The weekly average 30-year fixed mortgage rate dropped to 6.67% as of July 3, the lowest it has been since early April. Daily rates hovered slightly higher at 6.75%.
This reduction in borrowing costs has resulted in the median monthly mortgage payment falling to $2,742 the lowest level in four months and a modest 1.6% decrease year-over-year.
Demand and supply hold steady
Despite affordability challenges, homebuyer demand remains relatively strong:
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Mortgage-purchase applications rose 16% year-over-year, though they held flat week-over-week.
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Home touring activity, tracked by ShowingTime, climbed 32% from the beginning of the year notably higher than the 21% increase recorded at the same time last year.
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Google searches for home for sale reached their highest level in a year, suggesting sustained buyer interest.
However, pending sales a key indicator of market activity dropped 3.2% from the same time last year, marking the sharpest decline in nearly four months. This dip may reflect hesitancy among buyers still facing affordability constraints, despite improving rate conditions.
Sellers begin to change their minds
New listings edged down 0.7%, the first weekly decline in nearly six months, while the total number of active listings rose 14.1% year-over-year the smallest increase in over a year. The market's inventory now sits at 4.1 months of supply, inching toward a balanced market but still favoring sellers slightly.
Homes are staying on the market longer, with the median days on market rising to 37 days, up five days from the prior year. Additionally, only 36.3% of homes went off the market within two weeks, down from 40% a year ago.
Fewer bidding wars
With increased inventory and longer market times, competition among buyers has cooled slightly. The share of homes selling above list price dropped to 28.4%, down from 32%, while the average sale-to-list price ratio slipped to 99.1%, from 99.6% a year ago.
Market dynamics varied significantly by region:
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Detroit led all metros with a 10.1% year-over-year increase in median sale price, followed by Newark, N.J. (9.4%) and Cleveland (7.3%).
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On the flip side, Oakland, Calif., saw the largest decline at -3.7%, with San Diego and West Palm Beach, Fla., close behind at -3.4%.
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Virginia Beach, Va., led in pending sales growth (+7.4%), while San Jose, Calif., and Las Vegas saw steep double-digit declines.
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Tampa, Orlando and San Diego were among the metros with the largest year-over-year drop in new listings.
Posted: 2025-07-08 14:37:50