U.S. Median Home Price Sets New Record at $399,633 as Pending Sales Decline

The U.S. housing market continues to reflect deep affordability pressures, with new data from Redfin showing that the median home sale price has hit a historic high—even as pending sales trend downward.

For the four-week period ending July 6, the median sale price reached $399,633, a 1% increase year over year and the highest median price on record, according to Redfin’s latest housing report released Thursday.

However, that new price milestone is juxtaposed against a 3.5% annual drop in pending home sales, marking the second-largest decline since early February. It follows a 4.1% drop in the previous week, pointing to buyer hesitancy amid affordability constraints.

📉 Sales Slowing, But Buyer Activity Rising

Despite the drop in signed contracts, there are positive signs of buyer interest rebounding in other parts of the market. Redfin reported:

• Mortgage applications rose 9% in the same period, driven by a dip in mortgage rates to 6.67%, the lowest level since April.

• Home tours increased 25% since the start of the year.

• Google searches for “homes for sale” hit their highest volume in 12 months.

These indicators suggest that buyers are watching the market closely, potentially ready to act if affordability or inventory conditions improve.

“Some homes are moving fast, others are seeing multiple price reductions,” said James Gulden, a Redfin Premier agent in Boston. “It’s not location or price-tier specific—the mixed results permeate every corner of the market. Prices are still at record highs, but with more homes sitting longer, the market is gradually shifting in buyers’ favor.”

💲 Sellers Still Reaching for Premium Prices

Sellers haven’t backed off their pricing strategies. The median asking price climbed to $409,973, up 3.6% from this time last year.

At the same time, new listings dipped by 0.3%, marking the third consecutive week of decline. That stall in listing activity may be due in part to the so-called “lock-in effect,” where homeowners are reluctant to sell and trade up into a higher interest rate environment.

🏘️ Inventory Hits Key Benchmark: 4-Month Supply

The total housing supply ticked up to a 4-month inventory, a crucial marker that typically reflects a more balanced market between buyers and sellers. (A 4-to-5-month supply is generally considered equilibrium.)

This gradual buildup of supply, alongside still-high prices and rising buyer interest, signals a transitional phase in the market—where neither buyers nor sellers have full control.

📊 At a Glance: Redfin’s Latest Market Data (as of July 6, 2025)