Home Prices Drop in 14 Major U.S. Metros, Including Parts of Florida and Texas, Report Says

(8/7/25)  According to a report released by Redfin on July 31, the median home-sale price fell in 14 of the 50 most populous U.S. metropolitan areas. Oakland, Calif. saw the biggest drop, with a 6.8% year-over-year decline, followed by two Florida metros and two Texas metros: West Palm Beach (-4.9%), Jacksonville (-3.1%), Austin (-2.9%) and Houston (-2.8%).

Prices are dropping in these areas because the market has slowed due to high housing costs and economic uncertainty, with homes taking longer to sell than a year ago in every major metro. In West Palm Beach, for example, the typical home that went under contract during the four weeks ending July 27 took 93 days to do so, the longest period of all the metros in the analysis and up 18 days from a year earlier.

What does all of this mean?

Well, if you’re a prospective buyer in one of the metros where prices have dropped, this is great news. It means homes are more affordable and that there are more homes on the market to choose from.

But, if you’re a seller, then it’s important to understand two things. First, your home is going to sit on the market for longer than you may expect, so prepare for that. Also, buyers are getting the upper hand in some markets around the nation, so that means you need to price your home realistically, be patient and, above all, don’t panic. It’s key to work with an experienced local real estate agent – one who not only knows your market intimately but someone who has also been an agent long enough to have sold homes not only during peak times, when multiple offers and above-ask sales were common, but in slower times, when their creative marketing and negotiation skills were honed.

Wondering which metros had the biggest year-over-year increases in sales prices, according to Redfin? Cleveland topped the list, with a 15% year-over-year increase, followed by Montgomery County, Pa. (+9.2%), Nassau County, N.Y. (+8.5%), Detroit (+6.9%) and Indianapolis (+6.7%).