After taking a brief dip, home prices are on the rise again. But for once there’s a silver lining for buyers in what has long been a frustrating housing market.
According to the latest Realtor.com® Weekly Housing Trends Report, the national median listing price inched up by 0.2% last week compared with this time last year. That might not sound like much but it shows a return to the market’s slow and steady upward march after prices slipped 1.1% the previous week. It also continues a broader trend: nine straight weeks before that saw either flat or climbing prices.
Dig a little deeper and the story’s clearer: the median price per square foot, which adjusts for changes in home sizes, grew 0.9% year over year. “This marks a faster pace of growth than in the prior two weeks and suggests that the underlying value of homes continues to increase,” says Jiayi Xu, an economist at Realtor.com.
Still, rising prices and stubbornly high mortgage rates are a one-two punch many buyers are struggling to absorb. The average rate on a 30-year fixed mortgage jumped to 6.89% for the week ending May 29—its latest step upward in a climb that’s kept many would-be homeowners on the sidelines. Part of the reason is lingering uncertainty over the future of government-backed mortgage giants Freddie Mac and Fannie Mae, thanks to mixed signals from former President Donald Trump.
In this high-cost environment, it’s no surprise that nearly two in five buyers recently told Realtor.com that budget constraints are a major roadblock to owning a home. Adding to the anxiety: more than 60% of respondents in the same survey said they expect a recession within the next year.
A Market Shifting in Buyers’ Favor
Despite the financial headwinds there’s some genuine good news for buyers. As spring winds down and summer kicks off, the market is starting to feel—dare we say it—just a bit more welcoming.
More listings are popping up. New listings rose 8.2% last week compared with the same period in May 2024. That’s no small feat in a market where supply has felt squeezed for years. The total number of homes for sale nationwide is up nearly 30% from a year ago. That’s the 81st straight week of growth in active inventory—and enough to push the number of for-sale homes past the 1 million mark, the highest since December 2019.
“For buyers, this means better opportunities to find a home that fits their needs—even amid ongoing economic challenges,” says Xu.
Perhaps just as importantly, the frenzied bidding wars that once defined the post-pandemic market appear to be cooling off. Fewer buyers say they’re worried about having to overbid, which suggests that the market is calming down and the house hunt is becoming, as Xu puts it, “a little less stressful.”
But Not Everyone Is in the Clear
That said, not all signs point to a rosy future. Mortgage rates are still hovering near 7%, which is far from affordable for many households. High home prices haven’t come down meaningfully either. Add in general economic jitters—concerns about job security, stagnant wages, rising costs—and the path to homeownership still feels out of reach for a lot of people.
Young professionals, especially those fresh out of college, are having an especially tough time. Without sizable savings or financial support from family, many are watching their dream of homeownership fade further into the distance.
And while more homes are being listed, inventory still hasn’t caught up to pre-pandemic levels. The shortages are especially sharp in the Midwest and Northeast, where options remain limited and competition tighter.
Even the pace of the market has lost some steam. Last week homes spent five more days on the market compared with this time last year. Today’s typical home sits unsold for about 50 days. That’s quicker than pre-COVID norms—but much slower than the frantic pace of May 2021, when homes were flying off the market in just 33 days.
The Bottom Line: A Better Time to Buy—If You Can Afford It
The housing market is showing signs of softening, at least for buyers who can still afford to play the game. Prices are back on the rise, but the surge in listings and the easing of competition offer some relief.
Buyers now have more breathing room. They can take their time, look around, and maybe even negotiate a little. It’s not a buyer’s market yet—not quite—but it’s no longer a full-on seller’s playground either.
So if you’re in the market, this summer might be your moment. Just be ready to crunch the numbers—and move fast when the right listing pops up.
