Fresh data from the National Association of Realtors shows that home prices are now dropping in nearly half of U.S. cities, reflecting a sharp cooling of the housing market. Sellers in many areas are being forced to cut prices as inventory grows and affordability remains a challenge.
The steepest declines have been recorded in major metro areas across the West and Sun Belt. Cities like Oakland, West Palm Beach, Jacksonville, Austin, and Houston have seen some of the largest annual price drops. At the same time, the national median home price edged slightly upward by about 0.2% year-over-year, reaching roughly $421,400.
One of the clearest signs of the market shift is that nearly 27% of homes listed in July had their prices reduced, marking the highest level ever recorded for that month. Real estate analysts say this points to a transition from a seller’s market to one that is increasingly balanced, with buyers regaining leverage.
Industry experts note that while housing demand has not collapsed, regional disparities are becoming more pronounced—leaving some markets vulnerable to deeper corrections while others remain stable or show modest growth.