Prices fell across the country for the third month in a row
US home prices fell 0.1% in July on a seasonally adjusted basis, marking the third consecutive month of decline, according to the latest Redfin Home Price Index (RHPI). The report, released Tuesday, noted that prices decreased in 39 of the 50 largest US metro areas, the most widespread drop recorded since the index began in 2012.
Year-over-year growth also slowed sharply, rising just 2.9%—the weakest pace in RHPI history. The RHPI, which tracks repeat sales of single-family homes, has only reported monthly declines on five occasions: August 2022, December 2022, and May, June, and July of this year.
The cooling market reflects shifting dynamics between buyers and sellers. Inventory levels have returned to pre-pandemic norms, while demand has fallen to its lowest point in more than a decade outside of April 2020, when lockdowns halted transactions. Elevated mortgage rates, record-high prices, and economic uncertainty continue to discourage many would-be buyers from entering the market.
“After several years of tight inventory driving relentless price growth, we’re now seeing the opposite dynamic,” said Redfin senior economist Sheharyar Bokhari. “Home prices are falling in more US metros than at any point since we began tracking this data in 2012, and the reason is simple: supply is significantly outpacing demand. If homeowners want to sell, they have to meet buyers where they are, which often means lowering prices. It’s a moment where patient, prepared buyers can find deals that simply weren’t possible a year ago.”
At the metro level, West Palm Beach, Florida, saw the steepest month-over-month decline at 2.6%, followed by San Diego (-2.2%) and Austin, Texas (-1.9%). Meanwhile, Warren, Michigan, posted the strongest monthly gain at 1.3%, with Newark, New Jersey, up 0.7% and San Jose, California, rising 0.5%.
Annual price changes varied widely. New York led the gains with an 11.8% increase, followed by Newark (9.3%) and Nassau County, New York (8.3%). On the other hand, Austin registered the sharpest drop at 4.5% year over year, while Tampa, Florida, and Dallas declined 4.2% and 2.6%, respectively.
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