The national median listing price dropped to $429.5K in May, down 2.4% year-over-year and the steepest annual decline in Realtor.com data going back to 2017.

That marks seven consecutive monthly declines in the national median, per the same report.

The number of homes under contract rose 4.3% year-over-year in May, a sixth straight monthly gain.

"Sellers are pricing to sell rather than pricing to test the market," said Jake Krimmel, Realtor.com's senior economist.

The share of listings with price cuts fell to 17.5% in May, down 1.6 percentage points from a year ago.

To Krimmel, that signals a strategic shift. Sellers are setting realistic prices from the start rather than testing high and discounting later. That contrasts sharply with last summer, when outdated price expectations stalled deal flow.

Median price per square foot shed 2.5% from a year ago, a decline reflected in 35 of the 50 largest markets, per the same report.

Delistings Hit Highest Rate Since 2020

Not every seller is adapting. Roughly 5.8% of all US home listings were pulled in April, tied for the highest share since March 2020, per Redfin, a brokerage owned by Rocket CompaniesRKT

.

Delistings rose 3.8% month-over-month in April on a seasonally adjusted basis, a second straight monthly increase.

Atlanta led all major metros, with 10.7% of April listings pulled. San Jose followed at 9.3%, then Los Angeles at 7.8%, Dallas at 7.8%, and Seattle at 7.7%, per the same Redfin report.

"Buyers know they have negotiating power, often offering under the asking price," said Patricia Ammann, a Redfin agent.

Some sellers who pulled listings in the past year are now returning to market.

2.5% of April listings were relistings, tied for the highest share since mid-2020, per the same report.

Memphis posted the sharpest metro-level decline, with its median listing price falling 13% year-over-year and 22.3% of listings taking price cuts.

"Memphis looks like a slowing and stagnating market where prices are dropping," said Krimmel, per Realtor.com.

Austin's median price per square foot fell 8.3%, per Realtor.com. The typical home now takes 10 more days to sell than a year ago.

Pending sales on existing homes rose 1.4% from March to April, per the National Association of Realtors. Inventory was up nearly 6% from March, per the same data.

Krimmel flagged contract cancellations and delistings as key metrics to watch heading into summer. He noted that 2026 cancellations have remained below prior-year levels so far.

Buyers who stay active are finding more negotiating room than at any point since the pandemic era.

Sellers increasingly face a choice between deeper discounts and walking away entirely.