U.S. Home Prices Reach New High, but Buyers Gain Negotiating Power
Home prices in the U.S. just hit a record high. According to data from Redfin, the median sale price for a home during the four-week period ending June 15, 2025, climbed to an all-time peak of $396,500 marking a 1% increase from the same time last year.
But before you assume the housing market is on fire, it’s worth noting that this modest year-over-year bump reflects a slowing pace of price growth. Earlier this year, annual gains exceeded 5%. And while June is traditionally the seasonal high point for sale prices, this year’s uptick comes with a twist: there’s more supply than demand.
List Prices Stay High, but Sales Close Lower
While the median listing price hit $422,238 about $26,000 above the typical sale price homes are often closing below asking. This 6% gap is a clear reversal from the post-pandemic seller’s market, when homes regularly sold for more than their list price.
Key Market Metrics (4 Weeks Ending June 15, 2025)
| Metric | Value | YoY Change |
|---|---|---|
| Median sale price | $396,500 | +1% |
| Median list price | $422,238 | +5% |
| Median monthly mortgage payment | $2,820 (at 6.81% interest) | +4.5% |
| Pending home sales | 87,397 | -1.5% |
| New listings | 102,784 | +4.4% |
| Active listings | 1,160,350 | +14.5% |
| Months of housing supply | 4 months | +0.7 pts |
| Median days on market | 36 | +5 days |
| Share sold above asking | 28.6% | Down from 32% |
| Sale-to-list price ratio | 99.1% | Down from 99.6% |
Buyers Have More Leverage
More listings and fewer bidding wars mean buyers are in a stronger position than they’ve been in years. Pending sales are down slightly, and mortgage applications have slipped by 3% week-over-week. High borrowing costs and persistent affordability challenges continue to weigh on demand.
Sellers, on the other hand, are being advised to rethink pricing and be ready for negotiations. Kelly Connally, a Redfin agent in Tulsa, said that homes not priced competitively tend to linger on the market. “A sharp list price and a move-in ready home are what today’s buyers are looking for,” she noted.
Markets with the Biggest Home Price Gains
- Philadelphia, PA: +5.5%
- New Brunswick, NJ: +5.4%
- Pittsburgh, PA: +5.3%
- Nassau County, NY: +5%
- New York, NY: +4%
Markets Where Prices Fell the Most
- Oakland, CA: -5.9%
- Jacksonville, FL: -3.9%
- Dallas, TX: -3.1%
- San Diego, CA: -2.4%
- Atlanta, GA: -2%
New Listings See Big Swings
Some metros are seeing a flood of new listings, while others are tightening:
Biggest Increases in New Listings:
- Warren, MI (+14%)
- Cincinnati, OH (+13.7%)
- Columbus, OH (+11.3%)
- Cleveland, OH (+10.3%)
- Indianapolis, IN (+9.5%)
Biggest Decreases:
- Tampa, FL (-11.5%)
- Orlando, FL (-8.7%)
- Jacksonville, FL (-7.2%)
- San Jose, CA (-7%)
- Atlanta, GA (-6.6%)
Pending Sales Are Mixed
While pending sales are down overall, some markets are seeing strong activity:
Top Risers:
- Cincinnati, OH (+5.2%)
- Chicago, IL (+5%)
- Dallas, TX (+4.1%)
- San Francisco, CA (+4%)
- Columbus, OH (+4%)
Top Decliners:
- San Jose, CA (-18.5%)
- Fort Lauderdale, FL (-15.5%)
- Las Vegas, NV (-14.9%)
- Miami, FL (-14.6%)
- San Diego, CA (-11.1%)
Outlook: Price Adjustments Ahead
With supply outpacing demand and buyers increasingly cautious, many experts believe sale prices could soften in the coming months. Sellers who bought at the market’s peak in 2021 or 2022 are now realizing that they may need to drop prices or offer concessions to close deals.
“Some sellers are holding out at first, hoping to recover what they paid a few years ago,” said Redfin agent Corey Stambaugh. “But when offers don’t come in, they quickly change course and get serious about negotiations.”
Bottom Line
Yes, home prices are at a record high. But the real story is the shift in power. Buyers are taking their time, negotiating harder, and forcing sellers to adjust to a new reality. If inflation eases and mortgage rates tick down, the housing market could see a late-year boost. Until then, sellers should price carefully and be prepared to compromise. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
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