US Home Listing Prices See Steep Drop in May: Report

The June real estate market could signal more opportunities for potential homeowners throughout the country.

Realtor.com’s May 2026 Monthly Housing Trends Report, issued on June 3, shows that median listing prices nationwide dropped by 2.4 percent year-over-year—the biggest decline since 2017. The price per square foot, indicating the changing size mix of homes, fell by 2.5 percent year-over-year, representing a record annual decline.

Overall, the median listing price inched up by 1.1 percent from April, standing at $429,500, but the report indicates that sellers are now pricing to sell, rather than just to test the market.

Realtor.com Chief Economist Danielle Hale noted that rising mortgage rates, inflation, and economic uncertainty haven’t kept buyers away.

“Instead, we’ve seen six months of sellers adjusting their expectations and buyers rewarding them for it. List prices are down at a record pace, but price reductions are also down,” she said in the report. “That combination tells you sellers are doing their homework before listing, not after.”

Median days on the market remained unchanged from April at 52.

All four regions of the nation saw median price declines, with the sharpest in the West by 4 percent and the Midwest by 1.2 percent. Austin, Texas, saw the biggest year-over-year declines in square-footage prices by 8.3 percent, followed by Memphis, Tennessee, by 5.9 percent, and Buffalo, New York, by 5.8 percent.

On the opposite side, Providence, Rhode Island, experienced a 9.1 percent year-over-year gain in median square footage prices. Indianapolis and Cleveland also recorded gains in square-foot prices by 5 percent and 3.1 percent, respectively.

As sellers become more confident, new listings hit their highest May level since 2022 at 474,976, while active listings totaled 1.058 million. The 2.1 percent year-over-year increase is the highest May level since 2022.

In the Northeast, listings climbed by 8.6 percent year-over-year, and in the Midwest, they climbed by 4.7 percent.

The Buffalo, Providence, and Richmond, Virginia, metro areas led the nation in new listings, all with increases above 17.5 percent. However, active listings stalled in both the South and West.

The report noted that the rise in inventory in both the Northeast and Midwest is significant, as both regions have struggled to offer sufficient inventory for several years.

“The fact that new listings in the Northeast are now running nearly 9 percent ahead of last year—compared to a decline just two months ago—is a meaningful signal that the lock-in effect may be loosening where buyers need relief most,” the report reads.

Buyers are also beginning to step up, with pending sales recording a 4.3 percent year-over-year growth in May. Contract signings also increased by 3.5 percent.

“New listings kept growing, pending sales extended their growth streak to six months and price cut share fell.” Realtor.com senior economist Jake Krimmel said in the report. “The clearest explanation is that buyers and sellers have recalibrated to an environment where higher rates and economic uncertainty are the expected backdrop, not a shock.”

Looking ahead to June and the beginning of summer, Krimmel noted that delistings and contract cancellations are always a possibility but remain below recent levels.

“The second thing to watch is whether the Northeast and Midwest supply unlock sustains,” he said. “If new listings continue to grow there, that could be a sign that the broader market is stabilizing.”

However, he cautioned that continued stunted inventory growth in the South and West could mean the market may take longer to recover.

“It’s too early to declare the spring market has fully weathered the storm, but the leading indicators are holding,” Krimmel said.