Price Reductions on Existing US Homes For Sale Hit 18-Month High

On Thursday, Redfin reported that in the four-week period ending Sunday, May 26th, an average of 6.4% of home sellers cut their asking price, the highest share since November 2022.

According to Redfin, the median asking price dropped roughly $3,000 to $416,623 in the last week, the first decline in six months. Additionally, for-sale supply is growing staler: The age of inventory (the typical number of days active listings have been on the market) started rising year-over-year in May for the first time in eight months, hitting a median of 46 days. Together, those metrics suggest sale-price growth could soften in the coming months as persistently high mortgage rates turn off homebuyers, Redfin said.

For now, the median-home sale price is up 4.3% year-over-year to another record high, though sale prices are a lagging indicator because they are typically negotiated at least a month before a deal closes.

Low inventory is another factor pushing down sales, Redfin said. Even though 7.8% more new listings hit the market than during the same period last year, listing growth has been losing momentum for the last few months, leaving buyers with fewer homes to choose from than there typically are in May.