A growing number of major U.S. metro areas are seeing home prices decline, a sign that high borrowing costs and economic unease are beginning to take a toll on housing demand.
According to new data released by Redfin, home-sale prices fell year over year in 11 of the 50 most populous U.S. metro areas during the four weeks ending April 20, 2025—the largest number of metros to experience declines since September 2023. Leading the downturn were San Antonio, Texas (-3.7%), Oakland, Calif. (-3.5%), and Jacksonville, Fla. (-2.2%).
While prices nationally still rose 2.1% year over year to a median of $388,562, that marks the slowest growth rate in nearly two years, matching the pace from the previous four-week period.
Buyer Pullback Meets Rising Listings
The deceleration in prices is largely attributed to waning buyer activity. Mortgage-purchase applications dropped 7% week-over-week and home tours — though up 16% from the start of the year — are growing at less than half the pace seen this time last year.
At the same time, inventory is climbing. New listings are up 9.6%, and active listings have jumped 14.7% year-over-year, giving buyers more options — but not necessarily more urgency.
“There are always people who need to buy homes or sell homes, no matter what’s going on in the world. But with so much uncertainty in the economy, now is a time for those buyers and sellers to be more strategic than ever,” said Chen Zhao, Redfin’s Economic Research Lead. “My advice to sellers is to price your home fairly for the shifting market; you may need to price lower than your initial instinct to sell quickly and avoid giving concessions. On the flip side, buyers should negotiate on price and terms and shop around even more than usual for the best mortgage rates.”
Mortgage Costs Near Peak Levels
The median monthly housing payment has reached $2,848, just $8 shy of its all-time high, driven by a sharp rise in mortgage rates. The average 30-year fixed rate hit 6.83% during the week ending April 17, up from 6.62% the week before. This week, daily averages suggest rates could be hovering around 6.94%.
The volatility is being fueled by economic instability and fears of a potential recession, factors that have intensified with the imposition of new tariffs.
Mixed Signals Across Metros
While 11 metros saw home prices drop, others posted double-digit gains. Milwaukee (+11.7%), Newark, N.J. (+11.2%), and Cleveland (+9.5%) topped the list of markets with the highest year-over-year price increases.
Pending sales declined slightly nationwide (-0.3%) but remained resilient in cities like Columbus, Ohio (+16.4%) and Boston (+14.3%). Meanwhile, sales activity slumped significantly in Miami (-25.6%), Fort Lauderdale, Fla. (-17.9%), and Las Vegas (-14.7%).
