If affordability has been the biggest hurdle keeping you from buying a home, there’s some encouraging news.
Sellers are starting to lower their asking prices, giving buyers a little more breathing room.
In May, the typical seller listed their home for a median price of $429,500, which is 2.4% lower than it was a year ago, according to Realtor.com. While that price drop alone may not dramatically change what you can afford, every bit helps in today’s market, and it’s a sign that the market is starting to shift.
Buyers Are Finally Catching a Break
Take a look at the latest data from Realtor.com, and you'll see that this is the first May in several years where buyers have gotten a bit of relief when it comes to home prices.
Each May from 2022 through 2025 things stayed pretty steady. This year, though, there’s a clearer shift working in your favor (see graph below).
Dropping from $440,000 to $429,500 may not be huge, but it does give you a little more breathing room — and that can make a real difference when affordability has been so tight.
Now, lower asking prices don’t mean every home is suddenly within your reach, but they do show buyers are starting to gain some ground.
And these days, even a small amount of land can make a big difference.
What That Means for the Housing Market
And if you're wondering, this is actually good news for your move, not a sign that the housing market is in trouble.
The small dip from last May to this one shows that prices are easing a bit, but they’re not falling sharply. What it really signals is that the market is rebalancing as more homes have come onto the market.
Buyers have a bit more leverage again, and sellers can’t just price their homes however they want and expect them to sell quickly. They either have to align with the current market or risk needing to lower the price later on. Most sellers would rather avoid that price cut altogether. 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.”
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This points to a wider shift in the market.
Seller expectations have been a bit high since the pandemic buying frenzy, and you’ve probably noticed that yourself. But things are starting to settle back into a more normal rhythm. That could mean less negotiating to reach a fair price, and homes being listed at more realistic prices from the beginning.
Bottom Line
If affordability has been your main concern, the recent dip in prices could be a real opportunity. If you’re curious about what that looks like in our area, let’s connect.
