Are Home Prices Dropping? In a Fractured National Market, It Depends on Where You Live
Rhea-AI Summary
Realtor.com's July Housing Trends Report reveals a significantly fractured national housing market, with 33 of the top 50 metros experiencing year-over-year price declines. The South and West regions are shifting towards buyer-friendly conditions, while the Northeast and Midwest maintain tighter markets.
Key findings include: active listings rose 24.8% year-over-year to over 1.1 million homes, 20.6% of listings had price reductions, and homes took an average of 58 days to sell (+7 days vs 2024). Notable price declines were observed in Austin (-4.9%), Miami (-4.7%), and Chicago (-4.4%). The delisting-to-new listing ratio increased to 0.21, indicating growing seller hesitation.
Regional variations show the West leading in inventory growth (+32.5%) and price reductions (23%), while the Northeast maintains the lowest share of price cuts (12.7%).
Positive
- Active listings increased 24.8% year-over-year, providing more choices for buyers
- 19 of 50 largest metros still maintain prices above July 2022 levels
- Inventory growth continues for 21st consecutive month, showing market rebalancing
- Some markets like Seattle show resilience with 0.8% year-over-year price growth
Negative
- 33 of 50 largest metros experienced year-over-year price declines
- Delisting ratio increased to 0.21, indicating growing seller withdrawal
- Miami prices dropped 17.8% from July 2022 peak
- 20.6% of listings required price reductions
- Homes taking 7 days longer to sell compared to last year
Insights
US housing market shows divergent regional trends with significant cooling in South/West vs tighter conditions in Northeast/Midwest.
The national housing market data reveals a pronounced regional divergence that's reshaping market dynamics across the country. The 33 of 50 largest metros experiencing year-over-year price declines signals a meaningful shift in market balance, with the most significant price drops concentrated in previously hot markets like
What's particularly telling is how differently this cooling trend is playing out geographically. The South and West regions are clearly transitioning toward buyer-friendly conditions with the West seeing inventory surge 32.5% year-over-year and experiencing the longest median days on market increase (+10 days). Meanwhile, the Northeast and Midwest maintain relatively tighter conditions with more modest inventory growth and price stability.
The 21 consecutive months of inventory growth (now at +24.8% year-over-year) represents significant market rebalancing, though still 13.4% below pre-pandemic levels. This explains why, despite cooling conditions, we're not seeing broader price collapses—just targeted adjustments in previously overheated markets.
Perhaps most revealing is the delisting behavior, with sellers pulling listings at accelerating rates—the delisting-to-new listing ratio jumped to 0.21 in June from 0.13 in May. This suggests many sellers are opting to wait rather than accept lower prices, effectively creating a price floor through reduced supply. Miami's extraordinary 59 delistings per 100 new listings demonstrates how dramatically seller behavior is changing in formerly hot markets.
The data highlights a market in transition rather than crisis—a normalization process playing out unevenly across regions as the post-pandemic boom gives way to more balanced conditions. The divergent regional patterns create distinctly different opportunity landscapes for buyers and sellers depending on location.
Housing market rebalancing accelerates with regional fragmentation; affordability challenges persist despite price adjustments.
The July housing data reveals a market fractured along regional lines, with a clear pattern of price corrections in the South and West contrasting with resilience in the Northeast and Midwest. This geographic divergence is creating distinctly different market conditions across the country.
What's most significant is not just that 33 of 50 top metros showed year-over-year price declines, but the magnitude of reversals in previously hot markets. Miami's current pricing sits 17.8% below its July 2022 peak, while Austin has retreated 14.8% from 2022 levels. These aren't minor adjustments but substantial corrections that have effectively erased a significant portion of pandemic-era gains in these regions.
The price reduction data tells an important story about market psychology. With 20.6% of listings nationwide experiencing price cuts (and much higher in Western markets like Denver at 32.9%), sellers are being forced to reset expectations. However, the slight month-over-month decline in price cuts nationally (from 20.7% to 20.6%) might indicate sellers are finally listing more realistically from the start.
The inventory situation continues to show improvement with over 1.1 million homes for sale nationwide, marking the third consecutive month above the 1 million threshold. However, the pace of inventory growth is moderating (down to 24.8% year-over-year from 28.9% in June), suggesting the rapid expansion phase may be slowing.
The dramatic increase in delistings (up 48% year-over-year) reveals a market where many sellers still have unrealistic price expectations and would rather withdraw than adjust. This behavior, particularly pronounced in markets like Miami, creates artificial supply constraints that may slow the market's path to full equilibrium.
33 of the top 50 metros experienced year-over-year price declines
"The housing market has cooled modestly in 2025, prompting our lowered outlook for home sales and price growth. But the extent and persistence of rebalancing really varies across the country, and, regionally, homebuyers and sellers are likely to experience a very different market," said Danielle Hale, Chief Economist at Realtor.com®. "In the South and West, we're seeing clear signs of a shift toward buyer-friendly conditions—more price cuts, rising delistings, and homes sitting longer on the market–which has led to sometimes sizable price adjustments since 2022. Meanwhile, the Midwest and Northeast remain relatively tight, with less inventory relief and stronger pricing power for sellers. This widening divide underscores how local market dynamics are driving very different experiences for buyers and sellers."
Region | Active Listing | Median Listing | Median Listing | Median Listing | Median Days | Price-Reduced |
Midwest | 15.5 % | 0.2 % | 14.6 % | 4.1 % | 2 | 0.6 |
Northeast | 25.4 % | -0.6 % | -1.1 % | -0.7 % | 8 | 0.4 |
South | 18.1 % | -0.3 % | 9.8 % | 1.2 % | 3 | 1.9 |
West | 32.5 % | -0.8 % | -0.1 % | -0.7 % | 10 | 2.3 |
National Average | 24.8 % | 0.5 % | -1.0 % | 0.5 % | 7 | 1.1 |
Southern and Western Markets Lead Price Declines
While some metros continue to hold onto post-pandemic price gains, others, most notably in the South and West have started to reverse course. In July, 33 of the 50 largest metros posted year-over-year price declines.
"We're seeing a reset take hold in markets across the country such as
Only 19 of the 50 largest
Price Cuts Still Elevated Especially in the South and West, but Dip Modestly in July
Price cuts continue to be a key feature of this summer's market, even if median list prices have shown little movement overall. In July
Regionally, price cuts were far more common in the South and West (
Metro | Median List | Change | Median | No. of Days | Price | Pct. Pt. | ||||||
July 2025 | 2024 | 2022 | July 2025 | 2024 | 2022 | July 2025 | 2024 | 2022 | ||||
1 | 510,950 | -4.9 % | -14.8 % | 65.5 | 8 | 36 | 31.2 % | -0.9 | -9.3 | |||
2 | 509,950 | -4.7 % | -17.8 % | 88 | 16 | 48 | 17.7 % | -0.3 | 2.9 | |||
3 | 377,000 | -4.4 % | 7.7 % | 35.5 | 3 | 4 | 15.4 % | 1.9 | -0.5 | |||
4 | 1,148,483 | -4.2 % | 18.4 % | 50.5 | 8 | 18 | 17.6 % | 3.8 | -1.5 | |||
5 | 600,000 | -4.0 % | -7.7 % | 52 | 11 | 29 | 32.9 % | 0.1 | 2.5 | |||
6 | 505,000 | -3.8 % | -3.8 % | 69.5 | 16 | 40 | 30.8 % | 2.0 | -10.9 | |||
7 | 625,000 | -3.8 % | -0.8 % | 49.25 | 10 | 17 | 23.7 % | 3.3 | -7.0 | |||
8 | 544,950 | -3.5 % | -0.9 % | 55 | 20 | 34 | 24.3 % | -1.3 | -1.2 | |||
9 | 435,000 | -3.2 % | 2.4 % | 38 | 1 | 6 | 17.3 % | 2.2 | 3.5 | |||
10 | 349,950 | -3.1 % | 9.7 % | 36.5 | 5 | 12 | 19.2 % | 3.1 | 6.4 | |||
US Overall | 439,450 | 0.5 % | -1.0 % | 58 | 7 | 24 | 20.6 % | 1.1 | 1.5 | |||
Delistings Surge as Sellers Retreat
Sellers who couldn't find buyers at their desired price continued to pull listings from the market. Delistings in June (reported with a one-month lag) rose
Inventory Growth Slows But Persists
The number of homes actively for sale in July rose
Inventory increased in all four major
July 2025 Housing Metrics – National (*For metro stats, see Table table overview below)
Metric | July 2025 | Change over | Change over | Change over July |
Median listing price | -0.3 % | 0.5 % | 37.6 % | |
Active listings | 1,102,787 | 1.9 % | 24.8 % | -11.0 % |
New listings | 434,816 | -3.9 % | 7.3 % | -15.3 % |
Median days on market | 58 | +5 days | +7 days | +1 day |
Share of active listings with price | 20.6 % | -0.1 percentage | +1.1 percentage | +2.9 percentage |
Median List Price Per Sq.Ft. | -0.9 % | 0.5 % | 52.4 % |
July 2025 Housing Overview of the 50 Largest Metros
Metro | Active | New | Median List | Median | Median | Median | Median | Price |
30.5 % | 1.9 % | -1.2 % | -4.4 % | -1.4 % | 10 | 3.0 | ||
18.1 % | 8.1 % | -4.9 % | -14.8 % | -4.0 % | 8 | -0.9 | ||
37.3 % | 0.1 % | 6.6 % | 11.4 % | 2.2 % | 0 | 0.7 | ||
11.6 % | 10.3 % | 2.7 % | 3.5 % | 1.7 % | 7 | 1.1 | ||
25.0 % | 2.0 % | -1.4 % | 13.8 % | 1.9 % | 2 | 2.8 | ||
13.0 % | 8.0 % | 7.0 % | 19.8 % | 7.2 % | -4 | 0.6 | ||
42.6 % | 15.4 % | 2.4 % | 4.0 % | -0.8 % | 12 | 2.6 | ||
5.4 % | 2.2 % | -4.4 % | 7.7 % | -0.4 % | 3 | 1.9 | ||
26.5 % | 9.4 % | -3.1 % | 9.7 % | 2.5 % | 5 | 3.1 | ||
25.2 % | 6.6 % | 1.4 % | 22.2 % | 4.2 % | 2 | 1.5 | ||
13.7 % | N/A | N/A | 13.1 % | 0.4 % | 4 | 7.4 | ||
30.2 % | -1.3 % | -2.2 % | -8.5 % | -1.5 % | 9 | 0.6 | ||
36.7 % | -2.9 % | -4.0 % | -7.7 % | -3.3 % | 11 | 0.1 | ||
22.2 % | 9.5 % | 0.0 % | 0.0 % | 0.1 % | 2 | 3.5 | ||
1.8 % | -1.3 % | 6.9 % | 14.0 % | 4.5 % | 6 | 0.0 | ||
16.9 % | -4.6 % | 2.5 % | 16.7 % | -1.0 % | 3 | 2.4 | ||
31.5 % | 15.7 % | -0.5 % | -5.1 % | -0.9 % | 2 | 3.2 | ||
28.3 % | 1.5 % | -1.5 % | 2.9 % | -0.2 % | 5 | 4.6 | ||
16.5 % | -6.0 % | -1.4 % | -4.3 % | -1.4 % | 15 | 0.6 | ||
30.3 % | 1.9 % | 0.7 % | 1.3 % | 1.5 % | -3 | 1.2 | ||
65.7 % | 3.5 % | -1.0 % | -2.1 % | -0.6 % | 14 | 4.8 | ||
41.0 % | 2.6 % | -4.2 % | 18.4 % | -2.3 % | 8 | 3.8 | ||
24.6 % | 14.7 % | -0.6 % | 8.4 % | 2.4 % | 2 | 1.0 | ||
18.9 % | 3.5 % | -0.5 % | 6.3 % | 2.2 % | 10 | -3.7 | ||
30.0 % | -5.0 % | -4.7 % | -17.8 % | -3.6 % | 16 | -0.3 | ||
9.9 % | -0.7 % | 2.5 % | 26.2 % | 5.5 % | 0 | 3.5 | ||
10.8 % | -1.9 % | -3.2 % | 2.4 % | -1.3 % | 1 | 2.2 | ||
29.5 % | 20.7 % | -3.5 % | -0.9 % | -1.7 % | 20 | -1.3 | ||
9.4 % | 4.6 % | 0.0 % | 15.8 % | -4.4 % | 2 | 0.3 | ||
24.9 % | -2.9 % | 0.2 % | 3.0 % | 0.4 % | 4 | 0.6 | ||
26.4 % | -5.2 % | -3.0 % | -8.0 % | -3.0 % | 16 | 1.1 | ||
18.8 % | N/A | -1.2 % | 11.6 % | 1.0 % | -1 | -0.1 | ||
37.3 % | -0.8 % | -3.8 % | -3.8 % | -1.2 % | 16 | 2.0 | ||
11.0 % | 4.4 % | 0.9 % | 7.4 % | 2.3 % | 5 | 0.2 | ||
26.3 % | -7.6 % | -2.8 % | 0.2 % | -2.1 % | 8 | 3.4 | ||
23.6 % | -1.6 % | 3.2 % | 26.1 % | 4.6 % | 5 | 2.7 | ||
45.4 % | 21.3 % | -1.1 % | -7.1 % | -0.8 % | 9 | 4.3 | ||
20.9 % | 6.4 % | -2.1 % | 14.4 % | 0.3 % | 2 | 1.4 | ||
38.1 % | 1.9 % | 0.0 % | 0.7 % | -1.7 % | 11 | 2.1 | ||
37.0 % | 7.4 % | -3.8 % | -0.8 % | -2.6 % | 10 | 3.3 | ||
18.3 % | -5.7 % | -2.4 % | 9.1 % | -2.0 % | 5 | 2.2 | ||
14.7 % | 0.5 % | -2.7 % | -10.6 % | -2.3 % | 9 | -1.6 | ||
43.5 % | -1.9 % | -1.2 % | 9.7 % | -3.6 % | 7 | 3.2 | ||
21.3 % | -2.3 % | -0.5 % | -9.8 % | -3.9 % | 7 | 2.1 | ||
28.7 % | -11.3 % | -2.5 % | -1.9 % | -3.7 % | 7 | 4.2 | ||
36.7 % | 0.0 % | 0.8 % | -0.6 % | 1.5 % | 4 | 3.6 | ||
22.2 % | -6.2 % | -1.3 % | -6.7 % | -2.2 % | 12 | -2.5 | ||
41.0 % | -0.2 % | -2.5 % | -3.7 % | -1.2 % | 15 | 1.2 | ||
24.5 % | 4.0 % | 4.5 % | 18.6 % | 3.6 % | 4 | 4.0 | ||
56.5 % | 1.3 % | -0.8 % | 4.7 % | -3.9 % | 2 | 1.9 |
*Note: Changes in the underlying source data for the
Methodology
Realtor.com housing data as of July 2025. Listings include the active inventory of existing single-family homes and condos/townhomes/row homes/co-ops for the given level of geography on Realtor.com; new construction is excluded unless listed via an MLS that provides listing data to Realtor.com. Realtor.com data history goes back to July 2016. The 50 largest
Beginning with our April 2025 report, we have transitioned to a revised national pending home sales data series that applies enhanced cleaning methods to improve consistency and accuracy over time. While the insights and commentary in this report reflect the new series, the downloadable data remains based on our legacy automated pipeline. As a result, there may be slight differences between the report figures and those in the national download file as we transition.
With the release of its January 2025 housing trends report, Realtor.com® has restated data points for some previous months. As a result of these changes, some of the data released since January 2025 will not be directly comparable with previous data releases (files downloaded before January 2025) and Realtor.com® economics research reports.
About Realtor.com®
Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.
Media contact: Mallory Micetich, press@realtor.com
View original content:https://www.prnewswire.com/news-releases/are-home-prices-dropping-in-a-fractured-national-market-it-depends-on-where-you-live-302517889.html
SOURCE Realtor.com
FAQ
Which US housing markets saw the biggest price drops in July 2025?
How has housing inventory changed nationally in July 2025?
What percentage of home listings had price reductions in July 2025?
How do housing market conditions differ by US region in 2025?
What is the median home listing price in July 2025?
