May Home Prices and Market Trends: What You Need to Know

Great news! In the past week, the median asking price for homes dropped by $3,000, signaling a shift in the housing market!

According to a recent report from Redfin, 6.4% of home sellers nationwide reduced their asking prices during the four weeks ending May 26, marking the highest percentage since November 2022.

Key Market Indicators

1. Median Asking Price: The median asking price decreased to $416,623, the first decline in six months.
2. Listing Duration: Active listings now stay on the market for a median of 46 days, an increase seen for the first time in eight months.
3. Seller Adjustments: A significant share of home sellers have cut their prices, reflecting the cooling demand due to rising costs.

Expert Insight

Because the market is slower than usual, well-maintained properties listed for under a million dollars are still getting multiple offers. Hence, buyers should consider homes that might be slightly outdated or in less trendy neighborhoods to avoid competition and secure a home at the asking price or possibly lower.

Market Dynamics

• New Listings: There has been a 7.8% increase in new listings compared to last year, but the growth has slowed, leaving buyers with fewer options than usual for May.
• Sale Prices: Despite the recent trends, the median home sale price is up 4.3% year over year, reaching a new record high. However, sale prices are lagging indicators, as negotiations typically occur a month before closing.
• Pending Sales: Pending sales are down 3.4% year over year, aligning with the trends of the past month.

Looking Ahead

Sales price growth will likely soften in the coming months due to elevated mortgage rates. We encourage homebuying hopefuls to be flexible and open-minded about their home choices --and be ready with pre-approval to jump on an opportunity when it arises.