Because of market conditions, buying a home over the past few years has felt like a challenge. At first, prices were high and competition was fierce, then rates climbed to levels that priced a lot of people out. The picture is shifting and is providing opportunities for a lot of buyers.

Here is what is happening and what it means for the search ahead.

More Buyers Are Already Moving

One of the clearest signs the market has shifted is what buyers are actually doing. Pending home sales rose 3.7% compared to a year ago in June, the seventh month in a row that number has grown. For the first time in over two years, homes are not sitting on the market any longer than they did a year ago. (Realtor.com June 2026 Housing Trends Report)

Existing home sales rose 3.2% in May to 4.17 million, the highest level since December. NAR Chief Economist Lawrence Yun put it simply: "More Americans are on the move. Improving affordability is helping drive this momentum." (NAR Existing-Home Sales, May 2026)

First-time buyers now make up 35% of all home purchases, up from 30% a year ago and the highest share since June 2020. First-time buyers are usually the first to sit out when conditions get tough because they have the least financial cushion. When they come back in big numbers, it is a signal that the market has genuinely become more accessible. (NAR Realtors Confidence Index)

If buyers have been waiting for a sign that conditions are better, this is it.

Asking Prices Are Down, but the Picture Varies by Region

Nationally, asking prices fell 2.5% compared to a year ago in June. That is the eighth month in a row they have dropped, and the steepest decline since 2017.

Sellers are not in trouble. They are being realistic. Instead of listing their home at an inflated price and hoping for the best, sellers are pricing based on what the market will actually bear. As Realtor.com Chief Economist Danielle Hale explained: "Eight straight months of falling prices and seven straight months of rising pending sales are not a contradiction. Sellers are pricing competitively and buyers are rewarding them for it."

In plain terms: homes are not losing value. Sellers are just coming to the table more reasonably, which means buyers have a better chance of getting a fair deal without a bidding war. The national median home sale price in May was $429,300, with 4.5 months of supply available.

With that said, the national number only tells part of the story. Every market is different. List prices are down 4.0% year over year in the West and 2.5% in the South, while the Northeast is down just 1.0% and the Midwest is essentially flat.

Looking back to the national price peak in June 2022, the divergence is even wider. The West is down 7.3% and the South is down 3.5% from that peak, while the Midwest is up 10% and the Northeast is up 12.6%. A loan officer who knows the local market can help buyers understand what the data actually means for the specific area they are looking in. (Realtor.com June 2026 Housing Trends Report | NAR Existing-Home Sales, May 2026)

Buyers Have More Negotiating Power Than They Did a Year Ago

Here are some numbers that show how much the market has shifted in buyers' favor.

Only 25% of homes sold above asking price last month, down from 28% a year ago. Just 17% of buyers waived their right to a home inspection, down from 25% one year ago. The average home received 2.3 offers, compared to 2.5 a year ago. And only 5% of contracts fell through in the last three months. (NAR Realtors Confidence Index)

Fewer bidding wars. More time to think before deciding. Less pressure to skip important steps like a home inspection just to stay competitive. A year ago, buyers were doing whatever it took to win. Right now, there is room to be thoughtful.

Rates Are Still Lower Than They Were a Year Ago, But Waiting Might Cost Buyers

The 30-year fixed mortgage rate averaged 6.49% as of June 25, down from 6.77% at this same time last year. Rates have barely moved over the past six weeks. (Freddie Mac PMMS)

That consistency makes it easier to plan. Buyers can run real numbers on a real home without worrying that the rate will be completely different by the time they apply.

One thing worth knowing: the Federal Reserve held rates steady at its June meeting but signaled that a rate increase, not a decrease, may be coming later this year if inflation stays above their 2% target. (U.S. News) Waiting for rates to drop may not be a reliable strategy right now. The buyers acting today are not counting on rates to fall. They are making the math work at today's rates and moving forward.

Future Inventory Is Another Reason Not to Delay

Today's market feels more open than it has in years, and that is real. But there is a trend in the background worth being aware of.

New home construction fell 15.4% from April to May, hitting its lowest level since May 2020. The country is already estimated to be short 4.03 million homes, a number that has been growing rather than shrinking. (TheStreet, citing U.S. Census Bureau) If building activity stays slow, the inventory available to buyers could tighten again down the road. The current window of opportunity is real. How long it stays open is harder to predict.

Where Things Stand

The market is more in buyers' favor than it has been in years. Prices are more realistic. There is more room to negotiate. Rates are lower than last year and have been stable for weeks. And first-time buyers are entering the market at the highest rate since 2020. (NAR Realtors Confidence Index)

For buyers who have been on the fence, now is a good time to find out what the options actually look like. For agents, this data gives a real reason to reconnect with clients who went quiet earlier this year. A conversation with a Movement loan officer can help map out what financing looks like at today's rates, what it takes to qualify, and what options exist to make the numbers work.