Find Out Which Cities Are Experiencing Declines in the Housing Market

Housing prices in the United States are starting to fall in certain areas. According to recent data from Realtor.com, homes are selling more slowly than before.

In July 2025, the average home sat on the market for 58 days — five days longer than in June and a full week longer than a year earlier.

If you’re thinking about buying a home, this slowdown might make you wonder if prices are finally dropping. The answer depends a lot on where you are looking to buy.
 

Are House Prices Dropping?

Yes, in many places prices are going down. Data from the Federal Housing Finance Agency showed a small drop of 0.2% in home prices between April and May 2025.

In July, Realtor.com reported that prices dropped in 33 of the biggest 50 U.S. cities. Another eight cities still saw prices rise, but not as quickly as before.

The U.S. Census Bureau reports that the typical home price was $410,800 in the second quarter of 2025, down from $423,100 at the start of the year.

Housing inventory—the number of homes for sale—is also going up, which usually pushes prices down because there is less competition among buyers. In fact, active home listings increased by almost 25% from July 2024 to July 2025, and over 20% of homes saw their prices cut last month.

Still, the number of homes for sale is lower than before the pandemic. Many homeowners don’t want to give up their low mortgage rates from a few years ago, especially when new 30-year mortgage rates are still high—around 6% or more this year.
 

Will Mortgage Rates and Prices Drop More?

Mortgage rates may go down soon. The Federal Reserve is expected to cut rates at least once this year, and experts believe average rates could be about 6.4% by the end of 2026.

While that’s not a huge decrease, it could motivate more people to sell and buy homes.

Most predictions say that home prices will keep growing, just more slowly. Fannie Mae predicts price growth will slow from 3.8% this quarter to only 1.1% by the end of 2026.

The Mortgage Bankers Association expects price growth to almost stop by next year. This could make homes more affordable for many buyers.
 

Where Are Home Prices Falling?

If you want to buy a house soon, choosing the right city can make a big difference. For example:
 

• In Austin, Texas, prices have dropped almost 5% over the last year, and nearly a third of homes have seen price cuts.
• Since July 2022, prices have gone down in 19 of the 50 largest U.S. cities. Miami’s prices fell 18% in three years, Austin’s dropped nearly 15%, and San Antonio’s fell over 10%.
• Other cities where prices have dropped a lot include San Francisco, Dallas, Orlando, Denver, and Raleigh.

However, prices have not dropped everywhere. In 31 out of the 50 largest cities, prices are staying the same or going up.

For example, prices in Detroit haven’t changed much, and in cities like Milwaukee, Providence, and Cleveland, prices have increased by more than 20% since 2022.

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