Median list prices fell 2.4% year-over-year during May, according to a new report from Realtor.com. This marked the steepest decline in data recorded by Realtor.com since 2017.
The national median list price was $429,500 in May, up 1.1% from April but down 2.4% from one year before. May was the seventh consecutive month of annual price declines. Price per square foot fell by 2.5% year-over-year, which was also a record annual decline in the series.
At the same time, pending sales rose for a sixth straight month and new listings hit their highest May level since 2022. New listings surged in the Northeast (8.6% year-over-year) and Midwest (4.7%) but stalled in the South and West.
“Higher rates and geopolitical uncertainty could have sidelined both buyers and sellers this spring,” said Danielle Hale, chief economist at Realtor.com. “Instead, we’ve seen six months of sellers adjusting their expectations and buyers rewarding them for it. List prices are down at a record pace, but price reductions are also down. That combination tells you sellers are doing their homework before listing, not after. The market is finding a new equilibrium.”
“It’s too early to declare the spring market has fully weathered the storm, but the leading indicators are holding,” added Jake Krimmel, senior economist at Realtor.com. “Cancellations are low, new listings are growing, and sellers are cutting prices less even as list prices fall. The variables to watch in June are whether the Northeast and Midwest momentum holds and whether that macro pressure in the South and West starts showing up in cancellation data. Those are the early warning signs. So far, we’re not seeing them.”
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