Redfin Reports U.S. Asking Prices Post Smallest Increase in Nearly 2 Years As Home Sellers Adjust to Buyer’s Market

July 24, 2025 at 08:00 AM EDT

Slowing price growth is good news for homebuyers. So are shrinking housing payments, with the median U.S. mortgage payment falling to its lowest level in five months.

The median U.S. asking price is $403,000, up just 2.2% year over year, the smallest increase in nearly two years, according to a new report from Redfin, the real estate brokerage powered by Rocket.

Asking prices are losing steam because it’s a buyer’s market and sellers are realizing they must price lower to attract buyers. There were roughly half a million more home sellers than buyers in the U.S. as of springtime. While new listings have since slowed, rising just 0.6% year over year this week, there are still many more listings than sales: The total number of homes for sale is up 11%, while pending home sales are down 1.7%.

Sale-price growth is losing steam, too. Although the median sale price hit a record high during the four weeks ending July 20, it’s up just 1.6% year over year, compared to 5% to 6% growth throughout most of 2024 and the start of 2025.

Another piece of hopeful news for house hunters: The median monthly mortgage payment is $2,679, its lowest level in nearly five months. Housing payments are coming down from their peak because price growth is slowing and mortgage rates, while up slightly from two weeks ago, are sitting near their lowest level of the year.

“The housing market is testing the patience of some sellers, but it’s perking up the interest of first-time homebuyers, who are finally seeing affordability improve,” said Chaley McVay, a Redfin Premier agent in Portland, OR. “A lot of first-timers are opting for condos with reasonable HOA fees, which they’re often able to get for under asking price. Buyers should also keep an eye out for homes that have been on the market for over a month without a price drop. Sellers may be willing to accept a lower offer rather than drop their price, especially if the seller is already under contract on their next home or needs to move out of town.”

Redfin economists say this is a window of opportunity for buyers to jump into the market. Housing payments may decline slightly in the next few months, with sale prices expected to fall 1% year over year by the end of 2025, but buyers could lose some negotiating power as listings drop off.

For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.

Leading indicators

Indicators of homebuying demand and activity
	Value (if applicable)	Recent change	Year-over-year change	Source
Daily average 30-year fixed mortgage rate	6.78% (July 23)	Up from 6.67% two weeks earlier	Down from 6.9%	Mortgage News Daily
Weekly average 30-year fixed mortgage rate	6.75% (week ending July 17)	Up from a 3-month low of 6.67% hit 2 weeks earlier	Down slightly from 6.77%	Freddie Mac
Mortgage-purchase applications (seasonally adjusted)		Up 3% from a week earlier (as of week ending July 18)	Up 22%	Mortgage Bankers Association
Redfin Homebuyer Demand Index		Essentially unchanged from a month earlier (as of week ending July 20)	Up 1%	A measure of tours and other homebuying services from Redfin agents
Touring activity		Up 35% from the start of the year (as of July 21)	At this time last year, it was up 20% from the start of 2024	ShowingTime, a home touring technology company

Key housing-market data

U.S. highlights: Four weeks ending July 20, 2025 Redfin’s national metrics include data from 400+ U.S. metro areas, and are based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.
	Four weeks ending July 20, 2025	Year-over-year change	Notes
Median sale price	$399,000	1.6%	All-time high
Median asking price	$403,000	2.2%	Smallest increase since August 2023
Median monthly mortgage payment	$2,679 at a 6.75% mortgage rate	2%	Lowest level in nearly 5 months
Pending sales	81,981	-1.7%
New listings	93,053	0.6%
Active listings	1,168,464	11%	Smallest increase since March 2024
Months of supply	3.9	+0.3 pts.	4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions
Share of homes off market in two weeks	33.2%	Down from 37%
Median days on market	39	+6 days
Share of homes sold above list price	27.5%	Down from 31%
Average sale-to-list price ratio	99%	Down from 99.4%

Metro-level highlights: Four weeks ending July 20, 2025 Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.
	Metros with biggest year-over-year increases	Metros with biggest year-over-year decreases	Notes
Median sale price	Cleveland (13.6%) Newark, NJ (8.5%) Nassau County, NY (8.3%) Detroit (7.7%) Cincinnati (6.9%)	Oakland, CA (-7.6%) West Palm Beach, FL (-4.9%) Jacksonville, FL (-3.9%) Austin, TX (-3%) Tampa, FL (-2.7%)	Declined in 13 metros
Pending sales	Virginia Beach, VA (12.4%) Phoenix (11.5%) Warren, MI (7.6%) Montgomery County, PA (5.7%) Pittsburgh (5.4%)	Las Vegas (-14%) Miami (-13.9%) Tampa, FL (-13.3%) Orlando, FL (-12%) Houston (-10.9%)
New listings	Montgomery County, PA (14.3%) Cleveland (12.4%) Houston (10.8%) Philadelphia (10.2%) Boston (7.9%)	Nashville, TN (-15.6%) Tampa, FL (-15.4%) Jacksonville, FL (-14.6%) Orlando, FL (-14.2%) Sacramento, CA (-11.4%)

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-home-price-growth-slowing

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.