U.S. home prices fell at the fastest pace in nearly a decade in June, marking the eighth consecutive month of declines. The national median listing price dropped 2.5% year-over-year to $430,000, according to Realtor.com. This decline, the steepest since 2017, was driven by regional variations, with the West seeing the sharpest drop (-4.0%) and the Midwest remaining unchanged.
For the first time in over two years, homes spent no more time on the market than they did a year earlier, averaging 53 days. Pending sales rose 3.7% year-over-year, the seventh consecutive month of increases. Despite the price declines, mortgage rates remain high at 6.43%, posing ongoing affordability challenges for buyers.
Regional Trends
The West experienced the most significant price decline (-4.0% to $600,000), followed by the South (-2.5% to $389,000). The Northeast saw a modest decrease (-1.0% to $554,500), while the Midwest held steady at $329,900. The share of listings offering price reductions was 18.8% in June, down 1.9% from a year ago.
Market Rebalancing
Realtor.com's chief economist, Danielle Hale, noted that sellers are pricing homes more accurately from the start, while buyers are responding with bids. The national median list price has fallen 4.2% since its peak in June 2022. However, the Northeast and Midwest bucked the trend, with median prices rising 12.6% and 10%, respectively.
Affordability Challenges
Despite the price drops, affordability remains a concern. A buyer purchasing a $430,000 home with a 20% down payment and a 6.49% mortgage rate faces a monthly payment of $2,172—saving $132 compared to June 2025 rates. High mortgage rates and elevated prices continue to strain buyers' budgets.