If affordability has been the biggest thing standing between you and a home, there's a little good news.
Asking prices have started to come down.
The typical seller listed their house for a median of $429,500 in May. That’s 2.4% lower than a year ago, according to Realtor.com. On its own, that won't transform what you can afford, but in today’s market every little bit helps and it signals a broader shift taking place.
Check out this data from Realtor.com and you can see this is the first May in years where buyers have caught any sort of break price-wise.
Each May from 2022-2025, things held pretty steady. But this year? You can see that more noticeable shift in your favor (see graph below):
While the dip from $440,000 to $429,500 isn’t a big one, it gives you more breathing room. And that’s not a small thing when affordability has been this tough.
Now, lower asking prices don’t mean every home is suddenly within your range. But they do show buyers are gaining a little ground.
And in today’s market, a little ground can go a long way.
And just in case this crossed your mind, this is good news for your move, not bad news for the market as a whole.
The subtle dip from last May to this one shows prices are easing, but they’re not dropping off a cliff. What this is actually a sign of is that the market’s rebalancing now that the number of homes for sale has grown.
Buyers have a bit more power again, and sellers know they can't name just any price and expect their house to sell. They either meet the market where it is, or face a price cut later. And in general, sellers would rather avoid a price cut. As the New York Post explains:
"Rather than swinging for the fences with pandemic-era price tags, sellers are increasingly coming to terms with a new reality. The share of listings featuring price cuts actually fell to 17.5% in May, suggesting homeowners are doing their homework before putting up a “For Sale” sign instead of chasing unrealistic numbers and cutting later."
This signals a broader change in the market.
Seller expectations have been skewed a little high since the pandemic buying frenzy – you've probably felt that firsthand. But now, things are starting to normalize. It could mean less back-and-forth to land on a fair number. And homes should be priced a bit more realistically from the start.
If affordability has been your top concern, the recent dip in prices is an opening. Connect with a local real estate agent to see what that looks like in your area.
