Median Sales Price for US Homes Reaches Record High of $400,125

Mortgage rates decreased for the fifth straight week.

For sale sign in Washington on May 19, 2025. Madalina Vasiliu/The Epoch Times

The U.S. median home sales price hit a “record high” of $400,125 for the four weeks ending June 29, up 1.4 percent from last year, real estate brokerage Redfin said in a July 3 statement.

Among the 50 most populous U.S. metros, Detroit saw the largest year-over-year jump in median sales price at 10.1 percent, with Newark, New Jersey, a close second at 9.4 percent. This was followed by Cleveland; Nassau County, New York; and New York City.

Amid surging home prices, pending sales—home purchase contracts signed, but not yet closed—dropped by 3.2 percent year over year, which was the largest decline in almost four months.

Despite the high sales price, buyers are getting some cost relief as the median monthly mortgage payment hit its lowest level in four months at $2,742, as mortgage rates inched lower.

The average weekly rate on a 30-year fixed-rate mortgage hit 6.67 percent for the week ending July 2, the fifth straight weekly decline after peaking at 6.89 percent in late May, according to data from Freddie Mac. This is also the lowest rate since mid-April.

Sam Khater, Freddie Mac’s chief economist, said in a July 3 statement that the recent dip was the “largest weekly decline” since early March.

“Declining mortgage rates are encouraging and, while overall affordability challenges remain, we are seeing more sellers enter the market giving prospective buyers an advantage,” he said.

Some homeowners have adopted a wait-and-see approach with regard to selling their homes amid a housing market that is tilting more in favor of buyers, said a June 26 Redfin statement.

While the median sales price hit a high of $400,125, it was still roughly $15,000 lower than the median asking price of $415,174 by sellers, according to data from the brokerage. There are now more sellers than buyers in the housing market, giving buyers the power to negotiate down prices.

“Understandably, sellers want to get as much money as they can. Some homeowners feel they missed the prime selling window; many people who don’t need to sell right now are holding off, either staying put or trying to rent out their house,” said Kathy Scott, a Redfin Premier agent in Phoenix.

For homeowners who do need to sell their property, Scott advises them to set “realistic expectations.”

“Talk to your agent about the market in your exact neighborhood: How long are homes taking to sell, are they typically selling below asking price, and what are sellers doing in terms of repairs and concessions to get deals done? Price fairly based on those numbers,” she said.

Construction Shift, Summer Market

With home prices remaining elevated, apartment construction growth is “shifting to counties with lower population densities,” the National Association of Home Builders (NAHB) said in a June 3 statement.

“Elevated interest rates, tight lending standards, and economic uncertainty remain persistent factors limiting construction growth,” said NAHB chief economist Robert Dietz.

“And despite overall market declines for the multifamily sector, as demand for affordable, attainable housing continues to be strong, the multifamily market is exhibiting strength in lower-cost areas where housing supply can more readily expand.”

In a July 3 commentary, Lisa Sturtevant, chief economist at real estate data company Bright MLS, predicted the sluggishness in the housing market will continue this summer.

While mortgage rates have been edging down without any action taken by the Federal Reserve, the slightly lower rates have “not been enough” to boost home sales activity in any significant manner, she wrote.

Sturtevant suggested it is unlikely for mortgage rates to see a “significant drop” this summer. As rates remain elevated, buyers could continue to remain on the sidelines, rather than jumping into the housing market.

“In addition, despite the positive headline numbers, other factors are weighing on prospective homebuyers and sellers, including concerns about future layoffs, rising prices for some consumer goods, and high home prices,” she wrote.

“As a result, I expect the summer to be a continuation of the sluggish housing market we have had so far in 2025.”