House hunting may be getting a little easier on Americans' wallets. US home asking prices have posted their biggest drop on record, a shift that is handing buyers an affordability boost after years of climbing costs.
The decline was measured against the same period a year earlier. Asking prices fell about 2.5% year over year in June, bringing the national median to $430,000, according to the latest housing market data.
What makes the move notable is its scale. It marked the steepest annual decline in Realtor.com's data history, which dates back to 2017, and it was the eighth consecutive month in which asking prices came down, underscoring a sustained cooling in the market.
Analysts attribute the drop to a change in seller behavior. Economists say sellers are finally lowering their expectations up front and pricing their homes more realistically, rather than listing at inflated numbers and waiting for offers that do not come.
Buyers, in turn, have been responding to the more grounded prices. Pending home sales rose about 3.7% year over year, the seventh consecutive month of growth, a streak of momentum not seen in several years as more shoppers move off the sidelines.
The pricing shift has been reinforced by borrowing costs. Paired with a small dip in mortgage rates, the combination has trimmed what a typical buyer pays compared with last summer, a meaningful change for households that had been priced out of the market.
Taken together, the figures point to a housing market that has tilted toward buyers. After a long stretch in which sellers held the upper hand, the balance has been shifting as inventory and realistic pricing give purchasers more room to negotiate.
For would-be homeowners, the record drop offers at least a measure of relief in a market that has been stubbornly expensive. While prices remain high by historical standards, the latest data suggests the days of relentless increases have, for now, given way to a cooler and more forgiving landscape.