Wednesday, June 3, 2026
US home listing prices post biggest decline in nearly a decade as buyers return to market
The national median listing price fell 2.4% year-over-year in May to $429,500, marking the seventh consecutive month of annual declines and the steepest annual drop since Realtor.com began tracking the data in 2017.
Home sellers across the United States are lowering their asking prices at the fastest pace in nearly a decade, helping spur buyer activity despite mortgage rates remaining above 6.5%, according to a new housing report released Wednesday by Realtor.com.
The national median listing price fell 2.4% year-over-year in May to $429,500, marking the seventh consecutive month of annual declines and the steepest annual drop since Realtor.com began tracking the data in 2017.
At the same time, homes under contract increased 4.3% from a year ago, extending a six-month streak of growth in pending sales, according to the report. New listings rose 2.1% to nearly 475,000 properties, the highest May total since 2022.
The combination suggests that sellers are adjusting to changing market conditions while buyers are responding to improved affordability.
"Higher rates and geopolitical uncertainty could have sidelined both buyers and sellers this spring," Realtor.com chief economist Danielle Hale said in a statement. "Instead, we've seen six months of sellers adjusting their expectations and buyers rewarding them for it."
The housing market has remained active despite economic headwinds that include elevated mortgage rates, persistent inflation and uncertainty tied to international conflicts. Mortgage rates climbed from 6.30% to 6.53% during May, according to Realtor.com.
Economists said sellers appear to be pricing homes more realistically from the outset. The share of active listings with price reductions fell to 17.5%, down 1.6 percentage points from a year earlier, even as overall asking prices declined.
"The market is finding a new equilibrium," Hale said.
Inventory continued to improve nationally. Active listings increased 2.2% from a year ago to just over 1 million homes, though supply remained about 10% below pre-pandemic levels recorded in May 2019.
The report also highlighted growing regional differences.
The Northeast and Midwest posted the strongest gains in inventory and new listings. New listings increased 8.6% in the Northeast and 4.7% in the Midwest while active inventory climbed 7.1% in the Northeast and 8.2% in the Midwest.
By contrast, inventory growth largely stalled in the South and West, where active listings rose just 0.3% and 1.4%, respectively. Homes in the West also spent four more days on the market compared with a year earlier.
Among major metropolitan areas, Louisville, Ky., posted the largest increase in active listings, up 32.7%, followed by Cincinnati at 25.7% and Indianapolis at 21.9%.
The sharpest declines in listing prices per square foot were reported in Austin, Texas, down 8.3%; Memphis, Tenn., down 5.9%; and Buffalo, down 5.8%.
In San Diego County, the median listing price fell 5.6% from a year ago to $939,450, according to Realtor.com. Active listings declined 3.1% year-over-year in May, while new listings increased 4.4%.
San Diego homes spent one additional day on the market compared with May 2025, and the share of listings with price reductions fell 2.5 percentage points to 17.4%, the report said.
Jake Krimmel, a senior economist at Realtor.com, said the market's resilience has surprised analysts.
"Between higher inflation, climbing rates and cratering consumer sentiment, a market pullback would have been easy to explain, but it didn't happen," he said.
Still, economists cautioned that conditions could change if economic pressures begin affecting buyer confidence and transaction activity during the summer selling season. They said contract cancellations and listing withdrawals will be key indicators to watch in the coming months.
The national median listing price fell 2.4% year-over-year in May to $429,500, marking the seventh consecutive month of annual declines and the steepest annual drop since Realtor.com began tracking the data in 2017.
At the same time, homes under contract increased 4.3% from a year ago, extending a six-month streak of growth in pending sales, according to the report. New listings rose 2.1% to nearly 475,000 properties, the highest May total since 2022.
The combination suggests that sellers are adjusting to changing market conditions while buyers are responding to improved affordability.
"Higher rates and geopolitical uncertainty could have sidelined both buyers and sellers this spring," Realtor.com chief economist Danielle Hale said in a statement. "Instead, we've seen six months of sellers adjusting their expectations and buyers rewarding them for it."
The housing market has remained active despite economic headwinds that include elevated mortgage rates, persistent inflation and uncertainty tied to international conflicts. Mortgage rates climbed from 6.30% to 6.53% during May, according to Realtor.com.
Economists said sellers appear to be pricing homes more realistically from the outset. The share of active listings with price reductions fell to 17.5%, down 1.6 percentage points from a year earlier, even as overall asking prices declined.
"The market is finding a new equilibrium," Hale said.
Inventory continued to improve nationally. Active listings increased 2.2% from a year ago to just over 1 million homes, though supply remained about 10% below pre-pandemic levels recorded in May 2019.
The report also highlighted growing regional differences.
The Northeast and Midwest posted the strongest gains in inventory and new listings. New listings increased 8.6% in the Northeast and 4.7% in the Midwest while active inventory climbed 7.1% in the Northeast and 8.2% in the Midwest.
By contrast, inventory growth largely stalled in the South and West, where active listings rose just 0.3% and 1.4%, respectively. Homes in the West also spent four more days on the market compared with a year earlier.
Among major metropolitan areas, Louisville, Ky., posted the largest increase in active listings, up 32.7%, followed by Cincinnati at 25.7% and Indianapolis at 21.9%.
The sharpest declines in listing prices per square foot were reported in Austin, Texas, down 8.3%; Memphis, Tenn., down 5.9%; and Buffalo, down 5.8%.
In San Diego County, the median listing price fell 5.6% from a year ago to $939,450, according to Realtor.com. Active listings declined 3.1% year-over-year in May, while new listings increased 4.4%.
San Diego homes spent one additional day on the market compared with May 2025, and the share of listings with price reductions fell 2.5 percentage points to 17.4%, the report said.
Jake Krimmel, a senior economist at Realtor.com, said the market's resilience has surprised analysts.
"Between higher inflation, climbing rates and cratering consumer sentiment, a market pullback would have been easy to explain, but it didn't happen," he said.
Still, economists cautioned that conditions could change if economic pressures begin affecting buyer confidence and transaction activity during the summer selling season. They said contract cancellations and listing withdrawals will be key indicators to watch in the coming months.
