Home prices are being slashed across the US as the housing market cools — with one city seeing them plunge almost seven percent.
In July, prices dropped year-over-year in 14 of the 50 most populous US cities — with Florida, California and Texas hit hard, reports Redfin.
‘Sellers need to come to terms with two things,’ stated Redfin agent James Gulden. ‘Homes are going to sit longer, and buyers are gaining the upper hand.’
Homes are now lingering for weeks or months — a stark contrast to the red-hot days of bidding wars and same-day offers.
Sellers are being told to ‘be realistic’ and cut prices if they want to sell.
The good news is the lower prices combined with a new, slightly lower mortgage rate means buyers can finally make a move.
The national median sale price dropped to a five-month low in July, and Redfin economists expect a 1 percent national decline by the end of 2025.
This indicates that sellers are either reducing prices right from the start or providing incentives such as covering HOA fees, closing costs, and repair credits to finalize deals.
Buyers are gaining the upper hand said James Gulden, a Redfin Premier agent in Boston
Gulden said: ‘I advise my sellers to be realistic about the price they’re going to get. I’m also reminding sellers to be patient and not panic.
‘Sure, many homes have been selling within a week for the last several years, but that’s not historically normal.
‘They have to reorient themselves to the fact that it may take several weeks, or more, before receiving an acceptable offer.’
Price reductions are most significant in five cities. Oakland, CA, is leading the decline with a 6.8 percent drop in median home-sale prices from the previous year. The current median home sale price stands at $850,000.
Austin, TX, experienced a 2.9 percent price reduction from a year earlier, bringing the cost to $439,985, while Houston, TX, noted an average price decrease of 2.8 percent, now averaging $343,492.
In Florida, the market remains tough. West Palm Beach saw a 4.9 percent reduction, with average sale prices now at $475,625, whereas Jacksonville experienced a 3.1 percent decline, bringing average home sale prices down to $372,375.
Many hesitant buyers are holding out for it to get even worse, leaving homes on the market for a longer time.
In West Palm Beach, properties remain unsold for an average of 93 days — the slowest among the 50 cities surveyed. This duration is 18 days longer compared to the same period in 2024.
West Palm Beach had an overall 4.9 percent price drop on homes on the market in July
Oakland, California, posted a 6.8 percent annual price drop, the steepest among the cities
Houston had a year-over-year price drop of 2.8 percent for homes on the market in July
Homes in Jacksonville are lingering for months on the market despite deep price cuts
Sellers in Jacksonville who overprice initially find themselves making multiple reductions
Pending sales are also down 1.4 percent year over year, while the supply of homes for sale is up 7.7 percent in West Palm.
Nationwide, it doesn’t get much better for sellers.
Although the median US home-sale price is up 2 percent annually to $398,700— just shy of a record high — it’s far off from the 5 percent to 6 percent increases seen in late 2024 and early 2025.
In the first three months of this year, 16.2 percent of homes sold included both a price drop and a seller concession — up from 13 percent the year before.
Both are indicators sellers are taking steps to make homes more attractive.
Buyers, make your move.
