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Home Prices Dip in 14 of Top 50 US Metros as Mortgage Rates Bite
6 Aug
Summary
- Home prices declined in 14 of 50 largest US metros in July 2025
- Oakland, CA saw largest 6.8% year-over-year drop, other cities saw 2-5% declines
- Sellers offering concessions like rate buydowns and closing cost assistance
The housing market is showing signs of a shift in 2025, with home prices declining in 14 of the 50 largest US metros in the last week of July. According to a report from Redfin, the median home sale price saw the largest year-over-year drop of 6.8% in Oakland, California. Other major metros like West Palm Beach, Jacksonville, Austin, and Houston also experienced declines of 4.9%, 3.1%, 2.9%, and 2.8% respectively.
Nationally, the median home price increased by 2% year-over-year in July, but this is still down from the 5-6% gains seen in late 2024 and early 2025. Redfin economists expect a 1% annual decline in the national median price by the end of the year. The primary driver behind this shift is high mortgage rates, which have pushed many buyers out of the market, weakening demand.
As a result, the dynamic between supply and demand has flipped in some areas, with more homes for sale than buyers. Sellers and homebuilders are finding it harder to close deals, leading them to offer concessions to attract buyers. These concessions can include covering repair costs, helping with down payments or closing expenses, or providing money to offset higher mortgage rates.
