The median home-sale price declined year-over-year in 11 of the 50 most populous metro areas during the four weeks ending April 20, according to a recent report from Redfin. The last time home prices dropped in that many metros at once was September 2023.
Prices declined most in San Antonio (-3.7 percent), Oakland, Calif. (-3.5 percent), and Jacksonville, Fla. (-2.2 percent). The other places where prices fell were Phoenix; Austin, Texas; Dallas; Orlando, Fla.; Sacramento, Calif.; Fort Worth, Texas; Portland, Ore., and Nashville, Tenn.
Nationwide, the median home-sale price rose 2.1 percent year-over-year, the slowest growth rate since July 2023.
Home prices are falling in many major metros — and price growth is decelerating nationally — because many house hunters are backing off, but the number of homes for sale is holding up, according to Redfin. Home tours are slowing, mortgage-purchase applications are falling, and Redfin agents in many parts of the country report that would-be buyers are ultra-cautious amid high housing costs and widespread economic uncertainty. Pending home sales are down slightly year-over-year (-0.3 percent).
The median monthly housing payment is $2,848, just $8 shy of the all-time high, as weekly average mortgage rates jumped to 6.83 percent from 6.62 percent in just one week.
Mortgage rates are rising for the same reason many buyers are backing off: economic instability and the increasing chances of a recession, largely stemming from new tariffs, according to Redfin.
Meanwhile, new listings are up 9.6 percent year-over-year, and Redfin agents report that much of the activity they’re seeing in the market is from sellers.
“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,” Redfin Economic Chen Zhao said in a release. “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.”