Home Prices Have Never Been Higher

The thermometer isn’t the only thing going up across the country.

The median U.S. home sale price soared to an all-time high of $396,500 during the four weeks ending June 15, marking a 1 percent increase from the previous year, according to a report from Redfin. That price growth is in line with recent weeks.

Despite the record-breaking prices, the housing market shows signs of cooling as buyers gain negotiating power over sellers. The median sale price sits roughly $26,000 below the median asking price of $422,238, representing a 6 percent discount.

“I’m explaining to sellers more and more that we need to be strategic in our pricing strategy because homes that are overpriced, even slightly, are likely to sit on the market,” said Kelly Connally, a Redfin Premier agent in Tulsa.

This price gap signals a fundamental change in market dynamics. New home listings have surged 4.4 percent year over year, while total active listings jumped 14.5 percent. Pending sales, however, dropped 1.5 percent compared to last year and mortgage applications fell 3 percent from the previous week.

The market shift could stem from economic uncertainty and persistently high housing costs. The median monthly mortgage payment reached $2,820, just $53 below its record high from last month; 30-year mortgage rates hovered around 6.81 percent.

Buyers hold more leverage in negotiations: only 28.6 percent of homes sold above list price compared to 32 percent the previous year. The average sale-to-list price ratio dropped to 99.1 percent from 99.6 percent last year and homes are spending an additional five days on the market compared to last year.

Regional fluctuations paint a mixed picture. Philadelphia led price growth with a 5.5 percent year-over-year increase, while Oakland saw the steepest decline at 5.9 percent. Several Florida metros experienced significant drops in pending sales, particularly with Fort Lauderdale down 15.5 percent.