Redfin shows median annual home prices are at record high
Many potential homebuyers are discouraged as mortgage rates remain in the 6.5% range, and inflation data doesn't indicate much relief for rates in the near future.
However, in my years of reporting on the real estate market, I've seen how multiple factors impact home affordability - not just mortgage rates. We should also consider demand, inventory, speed of sales, and home prices.
Real estate technology company Redfin addressed most of these issues by releasing housing market data for the four-week period of May 25-June 21.
The Redfin Weekly Housing Market Tracker revealed interesting numbers, and some may seem alarming to homebuyers. But historical data put the current situation in perspective.
Annual housing activity is up slightly
The Housing Market Tracker shows that weekly pending home sales decreased slightly during this four-week period - just 0.1% - but increased year over year by 4.2%.
The trend with active listings is similar. The number of active home listings in this four-week period is 1,485,686 nationwide. The week-over-week numbers are down, but it's an annual increase of 0.4%.
There are probably two main reasons yearly active home listings have inched up. First, the number of new listings has increased ever so slightly from the same four-week period in 2025.
Related: 6.5% mortgage rates give homebuyers unexpected opportunity
Second, the median number of days homes were on the market during this period was 39 days. That's one day longer than this time last year.
I'm not surprised that homes are taking a little longer to sell in 2026. Many potential homebuyers are holding off as mortgage rates have been hovering around 6.5% for weeks. When fewer people buy, houses will naturally stay on the market for longer.
Frankly, I am a little surprised that the median days on the market is only one more day than this time last year. While the 2026 homebuying season may not be experiencing the great comeback so many had expected, it also doesn't seem to be spiraling downward. The home sales data are relatively flat.
Median home price hits record high
The median home sale price has increased by 2.5% to $408,814 - a record high, according to Redfin.
Initially, it looks odd that prices are at an all-time high when other data haven't moved much year over year, and buyer demand is slow. But there are two main things to keep in mind as we consider this statistic.
First, home prices increase over time. There have been exceptions, such as when mortgage rates skyrocketed in 2023 after hitting all-time lows during the Covid pandemic. But in general, we can expect home values to grow.
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Second, a 2.5% annual increase isn't too bad (relatively speaking). Yes, the annual price growth for the same period in 2025 was just 1.3%. But if we rewind a few years, Redfin data show that yearly price growth was 13.8% in 2022 and 23.6% in 2021. That was when American families and investors alike were trying to buy up homes quickly when rates were in the 3% range.
So, the current growth rate isn't a huge problem. But the Covid years have had a long-lasting effect on the housing market, resulting in today's median home sale price being the highest on record.
In the four-week period from the end of 2019 to the beginning of 2020, the median sale price was just $258,500. This means national home prices have increased by more than 36% since the beginning of the pandemic.
Key takeaways from Redfin's data
- The U.S. is a buyer's market. Sluggish housing activity, such as more active listings and longer time on the market, indicate that America is no longer a seller's market. Homebuyers have more power now.
- Home prices are mainly high due to the early 2020s. Sale prices spiked during the Covid pandemic, which has left the U.S. housing market in a tough spot today. But recent sale prices are only up by 2.5%, so as far as costs go, it isn't necessarily a bad time to buy. Prices will probably only continue to inch up.
- The median home price is at a record high. Even though the high price of $408,814 is due to volatile activity in years past, not current spikes, you should still consider today's high prices when deciding whether you can comfortably afford to buy a home.
- Median sales price depends on where you live. Redfin found that in the 50 largest U.S. metros, those with the largest sale price increases were San Francisco (11.5%) and Detroit (9.7%). Those with the lowest were San Jose (-6.2%) and Seattle (-4.8).
Source: Redfin
Related: Berkshire Hathaway says to ignore this home-buying red flag
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This story was originally published June 29, 2026 at 5:33 PM.