Originally published on June 29, 2023, by Realtor.com.
The U.S. median home listing price slipped -0.9% annually in June, posting the first yearly decline since 2017, the start of Realtor.com®'s trends data, according to its June Monthly Housing Trends Report released today. At the same time, while home shoppers had more homes to choose from this month, improvement stalled as the active inventory growth rate slowed for the fourth month in a row (+7.1%) and came in well below May's +21.5% rate.
"While home asking prices grew seasonally, price gains have been weakening since last summer as rising mortgage rates have added to ongoing affordability challenges and further cooled buyer demand, so the first year-over-year decline in median list prices this month wasn't unexpected. While this could feel like a welcome relief for buyers, our revised 2023 outlook expects only a modest drop in home prices of 0.6% for the year. This may not be enough to noticeably bring down costs until the end of the year as inflation and rates start to fall too," said Danielle Hale, Chief Economist for Realtor.com®. "Fewer potential sellers opting to list their home because of the mortgage rate lock-in effect continues to be a drag on the market. Fortunately, for those willing to make a move, falling prices won't erase the substantial price gains seen the past few years, and most will likely have enough equity to come out ahead."