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Median U.S. home price hits an all-time high

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  Published in House and Home on Friday, September 12th 2025 at 14:22 GMT by Seattle Times
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U.S. Home‑Sale Activity Slows in June, Even as Prices Reach New Peaks

In June, the United States saw a sharp drop in the number of homes that changed hands, a trend that economists and industry insiders attribute to the twin forces of soaring prices and persistent mortgage‑rate pressure. While the market is still in a “hot” phase, the data from Zillow and CoreLogic paint a more nuanced picture: buyers are finding it harder to move in, inventory is running short, and the median sale price has broken a record that stood for several years.

1. The Numbers Behind the Decline

• Total sales fell 4.6 % from May to June, according to Zillow. In concrete terms, 4.6 million homes were sold in June versus 4.8 million in the previous month.
• CoreLogic, a separate data source that tracks transaction prices, reports a 1.8 % decline in June sales compared with May. The two sources largely agree that activity cooled, even though the magnitude of the dip differs.
• The median sale price – the midpoint price for all homes sold – climbed to $385,000, a record high that has stood since 2017. This figure is more than $30,000 above the median for June 2023 and about 12 % higher than the median in February of the same year.

The price jump is not evenly distributed across the country. The Pacific region, which includes Washington, California, Oregon, and Alaska, shows the steepest increase. Meanwhile, the Midwest has been more tempered, with the median sale price hovering near $280,000.

2. Mortgage Rates: Still a Major Barometer

The June mortgage‑rate environment remains a key driver of the slowdown. The 30‑year fixed‑rate mortgage, which is a benchmark for affordability, is hovering just below 7 %. This is a noticeable lift from the 6 % range seen in late May, and it is higher than the 5.3 % that dominated the market during the first half of 2022.

Higher rates have a two‑fold effect:

1. Reduced buyer demand – Many prospective homebuyers are delaying their purchases or looking at smaller homes to keep their monthly payments in check.
2. Higher purchase price expectations – Sellers, knowing that buyers have limited financing options, often list their homes at higher price points. This contributes to the record‑breaking median sale price.

The U.S. Federal Reserve has kept its policy rate unchanged at 5.25 %–5.50 %, signalling that the “tightening” cycle is still underway, and mortgage lenders are reflecting that stance in their own rate offerings.

3. Inventory Shortfalls and Pending Sales

The supply side of the market is tightening further. Zillow’s inventory data shows a 10 % decline in available homes for sale compared with May. Meanwhile, the number of pending sales – contracts that have been signed but not yet closed – actually rose, indicating that buyers who do move are doing so swiftly.

• Pending sales in June: 5.1 million (up from 4.8 million in May)
• Active listings: 2.6 million (down from 2.9 million)

The disparity suggests a “hot‑but‑tight” market: buyers who are still in the market are being snapped up quickly, leaving many sellers who wish to list at high prices without a buyer.

4. Regional Highlights

• West Coast (California, Oregon, Washington): The West saw the most significant price lift, with median sale prices rising above $500,000 in some metropolitan areas. Yet, the number of sales per month has fallen by 6 % from May.
• Midwest: The region’s median sale price is more modest, around $280,000, but it also sees a smaller decline in sales volume (about 2 %).
• South: Prices are rising, especially in Texas and Georgia, but the rate of sales decline is milder, at roughly 3 % from May.

5. What It Means for Homebuyers and Sellers

For Buyers

• Financing remains a hurdle – With rates above 7 %, buyers may find their loan limits lower than in previous years. They need to factor higher monthly costs into their budgets.
• Limited inventory – Finding a suitable home may require quick decision‑making or a willingness to compromise on location or features.

For Sellers

• Price expectations may be realistic – The record‑high median price suggests that sellers can command premium prices, but they also need to be prepared for potentially longer closing times if buyers struggle with financing.
• Competitive market – Sellers can leverage multiple offers, but only if they have credible buyers lined up with sufficient pre‑approval.

6. Looking Ahead

Economists expect the sales decline to persist into the summer months unless mortgage rates ease or inventory rises. While the Federal Reserve is unlikely to cut rates until late 2025, the housing market’s resilience in the face of rising costs is being tested. Analysts are watching two key indicators closely: mortgage‑rate trends and the supply‑side of listings. If rates drop or new construction ramps up, the cooling may accelerate.

In summary, June’s data underscores a market that is still “hot” in terms of price but “cold” in terms of transaction volume. Record‑breaking median sale prices coexist with a shrinking inventory and higher borrowing costs, setting the stage for a complex, dynamic housing market that will challenge both buyers and sellers in the months to come.