The median home sales price hit $399,633 for the four weeks ending July 6, according to Redfin, setting a new record. The prices are up 1% from the same time last year.

But signs of buyer fatigue are emerging. Pending sales fell 3.5% year-over-year, according to the report, the biggest drop since February. Homes also took longer to sell, with properties on the market for a median of 37 days, one day longer than a month ago and up five days year-over-year. Fewer homes are going under contract within two weeks or selling above their list price compared to this time last year.

A number of factors may be keeping buyers on the sidelines, including elevated mortgage rates and economic uncertainty. Fannie Mae's Home Purchase Sentiment Index fell to 69.8 in June, a sign that many homebuyers are wary of pulling the trigger on a purchase. 

"It's not location or price-tier specific; the mixed results permeate in every corner of the market," said James Gulden, a Boston-based Redfin Premier agent. "Prices are still as high as they have ever been, but with homes sitting longer, the market is slowly turning in buyers' favor."

Redfin senior economist Asad Khan pointed to tight inventory as a key reason prices remain high.

"Home prices are hitting new records because supply, while improving, is still well below pre-pandemic levels," Khan said in comments referencing an earlier report on high home prices. "Demand has been depressed by high mortgage rates, but serious buyers are competing over a limited number of desirable homes, keeping sale prices elevated."

Despite the slump in pending sales, there's reason for sellers to be optimistic, Redfin said. Mortgage rates have started to fall in the past few weeks, with Freddie Mac reporting the weekly average for a 30-year fixed-rate mortgage at 6.67%., the lowest level since April and down 28 percentage points from last year. The decline helped fuel a 9% uptick in mortgage applications, according to the latest Mortgage Bankers Association survey.

While home prices set a record nationwide, they were down in some metros, especially in the South and West. In Oakland, Calif., the median sale price fell 6.2% year-over-year while prices dropped more than 5% in West Palm Beach, Fla. Home prices also fell around 3 to 4% in Austin, Texas, Tampa, Fla., and Atlanta.

This comes as increased supply in these areas have given buyers more options, helping to soften home prices. Condo prices have also fallen in many of these areas, dragging down the overall market.