Sellers Start Pricing Lower, Monthly Mortgage Payments Dip to 4-Month Low

The median U.S. asking price posted its smallest increase since the start of 2025 as more sellers come to terms with the reality of today’s buyer’s market.

The median U.S. asking price was $407,000 during the four weeks ending July 13, up 2.9% year over year, the smallest increase in over four months. That’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 starting to price their homes lower as they realize 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 getting concessions from sellers and often successfully negotiating sale prices down. The slowdown in asking-price growth, along with the shrinking gap between the prices sellers want for their homes and the prices buyers are willing to pay, is a sign that sellers are coming to terms with the reality of today’s buyer’s market.

Another sign that homeowners have caught onto today’s market conditions: Listings are losing steam. New listings are down nearly 1% year over year, the biggest decline since the start of 2025. Still, there are hundreds of thousands more home sellers than buyers in the U.S. The total number of homes for sale is up 12%, while pending sales are down 2%.

Sale prices are still at a record high, but they may decline soon; Redfin forecasts that the median U.S. home-sale price will fall 1% year over year by the end of 2025. And homebuyers’ median monthly housing payment is coming down, dropping to a four-month low this week as the weekly average mortgage rate sits near its lowest level since early spring.

The combination of a buyer’s market and falling monthly payments is encouraging some buyers to return to the market. Home tours are rising much faster this year than the same period last year, and Google searches of “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 Redfin Premier agent in Tampa, FL. “There’s a backlog of inventory, especially when it comes to condos, townhouses and newly built homes. Builders are giving all sorts of incentives, like mortgage-rate buydowns and covering closing costs, to get homes off their books. The one exception: desirable, move-in ready homes in the center of town where there aren’t as many new construction homes to compete with. Buyers will usually pick those up relatively quickly if they’re priced right.”

For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.

Leading indicators

Indicators of homebuying demand and activity Value (if applicable) Recent change Year-over-year change Source Daily average 30-year fixed mortgage rate 6.83% (July 16) Up from 6.67% two weeks earlier Unchanged Mortgage News Daily Weekly average 30-year fixed mortgage rate 6.72% (week ending July 10) Up from the prior week’s 3-month low of 6.67% Down from 6.89% Freddie Mac Mortgage-purchase applications (seasonally adjusted) Down 12% from a week earlier (as of week ending July 11) Up 13% Mortgage Bankers Association Touring activity Up 14% from the start of the year (as of July 14) At this time last year, it was up 4% from the start of 2024 ShowingTime, a home touring technology company Google searches for “home for sale” Highest level in nearly 2 years (as of July 14) Up 9% Google Trends We excluded the Redfin Homebuyer Demand Index this week to ensure data accuracy.

Key housing-market data

U.S. highlights: Four weeks ending July 13, 2025

Redfin’s national metrics include data from 400+ U.S. metro areas, and are based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.

Four weeks ending July 13, 2025 Year-over-year change Notes Median sale price $401,120 1.7% All-time high Median asking price $407,000 2.9% Smallest increase in 5 months Median monthly mortgage payment $2,699 at a 6.72% mortgage rate 2.4% Lowest level in 4 months Pending sales 81,906 -1.9% New listings 93,164 -0.3% Active listings 1,171,312 11.9% Smallest increase since March 2024 Months of supply 4.1 +0.5 pts. 4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions Share of homes off market in two weeks 34% Down from 38% Median days on market 38 +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: Four weeks ending July 13, 2025

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.

Metros with biggest year-over-year increases
Metros with biggest year-over-year decreases

Notes

Median sale price
Cleveland (11.8%)

Newark, NJ (10.2%)

Detroit (7.7%)

Nassau County, NY(7.7%)

Cincinnati (7.6%)

Oakland, CA (-7.6%)

West Palm Beach, FL (-5.1%)

Tampa, FL (-2.6%)