Home values fall in half of major US metros

Home values declined year-on-year in 25 of the 50 largest US metros in July with rising inventory and record-high price cuts helping tip market power back toward buyers.  

These findings, according to the latest Zillow market report, indicate that despite shifting dynamics, affordability remains a key barrier for many prospective homeowners. 

Zillow’s Home Value Index showed a modest 0.2% national increase in typical home values over the past year, reflecting a near-flat growth trend. In July, sellers slashed prices on 27.4% of listings — the highest share recorded since Zillow began tracking the metric in 2018. 

The markets seeing the largest annual home price gains were Cleveland (+4.7%), Hartford (+4.5%), Louisville (+3.9%), Detroit (+3.8%), and Buffalo (+3.7%). By contrast, steepest declines were recorded in Tampa (-6.2%), Austin (-6.0%), Miami (-4.6%), Orlando (-4.3%) and Dallas (-3.9%). 

Zillow senior economist Kara Ng said the uneven price trends highlight regional disparities in supply and demand. “A defining trait of this market is that buyers are gaining leverage that most of them can’t use, because cost barriers are too high,” Ng said. “Affordability is gradually improving where builders have kept up with demand — but broader housing shortages persist.” 

Indeed, metros with the steepest price drops saw some of the largest post-pandemic inventory surges, with builders more active in the South and West. Still, a national shortfall of 4.7 million homes underscores the persistent housing deficit. 

While homes that sell are closing within 24 days — near pre-pandemic norms — the median listing age rose to 60 days, the longest for any July in Zillow records.  

Currently, 27 metros are classified as balanced or buyer-friendly markets, up from 24 last month and 18 in July 2024. 

Home prices are softening in some cities — but is it enough to help frustrated buyers? Let us know what you think.