Redfin reported that the median U.S. home-sale price was $388,634 in October 2026, down 0.4% year over year and the first annual decline since May 2023. Sellers are cutting prices amid rising mortgage rates. A record share (36%) of homes that sold in October had at least one price drop, as mortgage rates averaged 7.33%. Roughly 15% of pending sales fell out of contract during the month, the highest share in Redfin’s data outside the pandemic spike in March and April 2020.