Annual decline marks sharpest drop since 2017 as mortgage savings erode due to higher taxes and insurance costs.
Median US home prices fell 2.5% year-over-year to $430,000 in June 2026, the steepest annual decline since 2017. The drop follows eight consecutive months of price declines, signaling a shift toward buyer-friendly conditions.
The decline contrasts with a half-decade of surging real estate values. At a 6.49% average mortgage rate, buyers with 20% down save $132 monthly compared to a year ago, though rising property taxes and insurance offset gains.
Sellers are adjusting prices upfront, reducing the need for later cuts, while buyers respond with bids. However, elevated borrowing costs and taxes may temper demand despite lower prices.