Lower Asking Prices Are the Silver Lining for Buyers in an Otherwise Cloudy Market

Asking prices continued to fall nationally this week, providing good news to homebuyers in a market that is otherwise clouded by rising mortgage rates and economic uncertainty.

The national median asking price for active listings was down 2.4% for the week ending May 23, compared to a year earlier, according to the Realtor.com® economic research team's weekly market update. It marked the 19th straight week of year-over-year price declines, the longest such streak in at least a decade.

"More homes may be coming to market at realistic prices," says Realtor.com senior economist Hannah Jones. "Sellers appear to be listing at more modest prices from the start, rather than listing high and cutting later."

While final sales prices remain up slightly on a national basis, there are signs that lower asking prices are translating into lower closing prices in more markets. Case-Shiller data released this week showed more than half of major cities saw annual declines in single-family sales prices in March.

The price weakness is no longer contained to the Sun Belt. Seattle posted the biggest annual decline in home prices, followed by Denver and Tampa, FL.

Nationally, the market continued to eke out a price gain of 0.7%, buoyed by hot markets such as New York City and Chicago.

But in many parts of the country, the softening in prices will represent welcome relief to buyers, who have struggled for years with some of the worst affordability conditions in decades.

Meanwhile, mortgage rates continue to climb as global oil prices drive concerns about renewed inflation. The average 30-year fixed rate rose to 6.53% this week, the highest since August, according to Freddie Mac.

That's bad news for buyers, of course, and may also be making home sellers skittish. Realtor.com data shows that new listings jumped 3.3% this week compared to last year. But that figure has been unusually volatile this spring, and new listings are actually down 0.5% year to date, compared with 2025.

"The bumpy trajectory over recent weeks suggests homeowners are approaching this spring with caution, likely taking cues from broader market and economic conditions," says Jones. "Some sellers are reengaging as the summer market approaches, while others appear to be staying on the sidelines amid rate volatility and economic uncertainty."

Homebuyers remain cautious. Mortgage applications to buy a home decreased slightly for the week ending May 22, compared with the prior week, according to the Mortgage Bankers Association.

But buyers aren't in full retreat—last week's purchase index was still up 5% from a year ago, when existing-home sales hit a 30-year low.

It shows that buyers are continuing to test the waters despite rising mortgage rates, giving sellers who price realistically a decent chance to get to closing.

And Realtor.com data shows that the typical home spent just one day longer on the market this week than a year earlier.

"This suggests buyers are steadily absorbing available supply rather than letting it accumulate," says Jones. "Combined with modest inventory growth, the overall picture is of a market where demand is soft but active enough to keep both supply levels and time on the market from building meaningfully."