U.S. Home Prices Hit Record High, Fewer Sales Signal Market Shift

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Mathew Abraham

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Mathew Abraham

Mathew Abraham, editor of Century Homes America, brings his passion for architectural history to explore the stories behind America’s most iconic homes.

U.S. Home Prices Hit Record High, Fewer Sales Signal Market Shift
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Home prices in the United States have climbed to a record high, even as the pace of growth slows and housing demand continues to drop. A recent report from real estate brokerage Redfin reveals that the median U.S. home-sale price has reached $396,500 during the four-week period ending June 15, 2025. While this marks a new peak, the broader housing market shows signs of softening, with reduced buyer activity and more homes for sale. Here’s a breakdown of what’s driving the current housing trends and what it means for buyers and sellers.

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Median Home Prices Hit All-Time High

Median Home Prices Hit All-Time High
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According to Redfin, the median home-sale price in the U.S. reached $396,500 in mid-June. This figure represents a 1 percent increase compared to the same period last year. Although modest, this rise sets a new national record for home prices. While earlier years saw sharper increases, the current uptick still underscores the ongoing affordability challenge facing buyers.

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Price Growth Slows Down Significantly

Price Growth Slows Down Significantly
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Although home prices are still rising, the pace of growth has cooled. Earlier in 2025, year-over-year price increases were around 5 percent. Now, the 1 percent gain reflects a slower market. This deceleration suggests that while demand still exists, it is no longer outpacing supply at the same intense rate as during the peak of the pandemic housing boom.

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June Still Brings Peak Pricing

June Still Brings Peak Pricing
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Historically, home prices tend to peak in the summer months, particularly in June and July. This year is following that seasonal pattern, but the market is less competitive than in recent years. Despite hitting a record price, many buyers are not engaged in bidding wars, and sellers are adjusting expectations accordingly.

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Buyers Regain Negotiating Power

Buyers Regain Negotiating Power
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One of the most notable shifts in today’s market is the growing ability of buyers to negotiate. Redfin’s data shows that the median sale price is now about $26,000, or 6 percent, lower than the median asking price, which stands at $422,238. In contrast to 2021 and 2022, when buyers often paid above the asking price amid fierce competition, the current gap signals that sellers are making concessions in a less aggressive market.

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More Homes Hit the Market

More Homes Hit the Market
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The total number of homes available for sale has increased by 14.5 percent compared to a year ago. This growth includes a 4.4 percent rise in new listings. While inventory is still below pre-pandemic levels in many areas, the increase is helping to shift the balance between supply and demand, giving buyers more choices and reducing urgency.

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Buyer Demand Continues to Decline

Buyer Demand Continues to Decline
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Despite more homes on the market, buyer demand remains weak. Pending sales, a key indicator of housing market activity, have dropped by 1.5 percent compared to the same time last year. Additionally, mortgage-purchase applications fell by 3 percent just last week. These figures suggest that high prices, combined with elevated mortgage rates, continue to discourage new buyers from entering the market.

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Remote Work & Pandemic Trends Still Influence Market

Remote Work & Pandemic Trends Still Influence Market
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Many of the current housing dynamics trace back to trends that emerged during the COVID-19 pandemic. At the time, low mortgage rates and the rise of remote work drove a surge in demand, leading to rapid price increases. Although mortgage rates are now higher and more workers have returned to offices, the long-term impact of pandemic-era buying patterns still lingers in the housing market.

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