Relief for Buyers: Home Prices Ease and Mortgage Costs Hit 4-Month Low
The median U.S. asking price was $407,000 during the four weeks ending July 13, up 2.9% year over year. This marks the smallest increase in over four months. It’s just slightly higher than the median home-sale price of $401,120. The small size of that gap is a sign that sellers are beginning to price their homes lower as they recognize it’s a buyer’s market. The median sale price is up just 1.7% year over year. Given that the average U.S. wage has increased by more than 4%, homes are more affordable than they were last year.
The housing market has been tilting in buyers’ favor for months, with buyers receiving concessions from sellers and often negotiating sale prices down. The slowdown in asking-price growth, along with the shrinking gap between the prices sellers want and the prices buyers are willing to pay, is a sign that sellers are adjusting to the current market conditions.
Another indication that homeowners are responding to the market is the slowdown in new listings. New listings are down nearly 1% year over year, the largest decline since the start of 2025. Still, there are significantly more home sellers than buyers. The total number of homes for sale is up 12%, while pending sales are down 2%.
Sale prices remain at a record high, but they may soon decline. Forecasts suggest the median U.S. home-sale price will fall 1% year over year by the end of 2025. Meanwhile, homebuyers’ median monthly housing payment is dropping, reaching a four-month low as mortgage rates hover near their lowest levels since early spring.
This combination of a buyer’s market and decreasing monthly payments is encouraging some buyers to return. Home tours are rising much faster than this time last year, and online searches for homes for sale are at their highest level in over a year.
“Buyers should look at a lot of homes and make a lot of offers, even if they’re low or below market value, as more and more sellers are willing to make a deal,” said Jim Fletcher, a real estate agent in Tampa, Florida. “There’s a backlog of inventory, especially for condos, townhouses, and new construction. Builders are offering incentives like mortgage-rate buydowns and covering closing costs. The exception is desirable, move-in ready homes in central locations with less competition from new construction. Those homes tend to sell quickly if priced appropriately.”
Leading Indicators
Indicators of homebuying demand and activity (as of July 2025):
Daily average 30-year fixed mortgage rate: 6.83% (up from 6.67% two weeks earlier)
Weekly average 30-year fixed mortgage rate: 6.72% (down from 6.89% year over year)
Mortgage-purchase applications: Down 12% week over week; up 13% year over year
Touring activity: Up 14% since the start of the year (compared to 4% last year)
Google searches for “home for sale”: Highest level in nearly two years; up 9%
Key Housing Market Data (Four Weeks Ending July 13, 2025)
Median sale price: $401,120 (up 1.7%, all-time high)
Median asking price: $407,000 (up 2.9%, smallest increase in 5 months)
Median monthly mortgage payment: $2,699 at a 6.72% rate (down to lowest level in 4 months)
Pending sales: 81,906 (down 1.9%)
New listings: 93,164 (down 0.3%)
Active listings: 1,171,312 (up 11.9%)
Months of supply: 4.1 (up 0.5 points; 4–5 months is considered balanced)
Share of homes off market in two weeks: 34% (down from 38%)
Median days on market: 38 (up 5 days)
Share of homes sold above list price: 27.9% (down from 32%)
Average sale-to-list price ratio: 99% (down from 99.5%)
Metro-Level Highlights
Metros with the biggest year-over-year increases in median sale price:
Cleveland (11.8%)
Newark, NJ (10.2%)
Detroit (7.7%)
Nassau County, NY (7.7%)
Cincinnati (7.6%)
Metros with the biggest year-over-year decreases in median sale price:
Oakland, CA (-7.6%)
West Palm Beach, FL (-5.1%)
Tampa, FL (-2.6%)
Atlanta (-2.6%)
Austin, TX (-2.4%)
Prices declined in 12 major metros.
Metros with the biggest year-over-year increases in pending sales:
Virginia Beach, VA (12.1%)
Phoenix (8.7%)
Warren, MI (8.2%)
Montgomery County, PA (5.1%)
Milwaukee (4.6%)
Metros with the biggest year-over-year decreases in pending sales:
Miami (-15.1%)
Tampa, FL (-13.3%)
Las Vegas (-12.8%)
Orlando, FL (-12.7%)
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By: Dana AndersonI Redfin News I July 17, 2025