BiggerPockets Daily Home Prices Drop in 14 Major Markets
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Aug 2, 2025 Home prices are dropping in 14 major U.S. cities, influenced by high interest rates and increased inventory. The disconnect between eager sellers and hesitant buyers is leading to more canceled deals. As home prices cool, the implications for investors and sellers are significant heading into late 2025. Recent trends show rising median sale prices and mortgage payments, but growth is slowing, highlighting the shifting dynamics in the market.
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Prices Drop in Major US Cities
- Home prices are falling year over year in 14 out of 50 major US metro areas due to rising inventory and fewer buyers.
- Sellers are holding prices steady despite homes taking much longer to sell, indicating a disconnect in the market.
Sellers Holding to Low Rate Advantage
- Sellers are reluctant to sell below what they bought for, often holding low mortgage rates and waiting for rates to drop.
- This results in many listings being canceled or pulled as sellers wait for an improved market.
National Market Slowing and Cooling
- National median sale prices rose slightly but growth is slowing and Redfin expects a 1-2% price decline by end of 2025.
- Homes now spend longer on market and buyers have gained leverage, but sellers remain reluctant to lower prices.