The housing market has been in a severe crunch because the COVID-19 pandemic, with restricted stock, elevated residence costs and mortgages within the 7% vary, persevering with to maintain many would-be residence patrons locked out. However even amid such tight constraints, modest declines in residence costs can nonetheless be present in some areas of the nation.
That is based on a brand new report from Realtor.com, which finds that median residence costs throughout the 50 largest metro areas within the nation have declined barely in July 2025, in contrast with three years in the past. Median residence costs hit a peak of $443,000 in July 2022, based on the Federal Reserve Financial institution of Saint Louis.
The extent to which residence costs are declining varies from area to area based on the Realtor.com report, which relies on the brokerage platform’s housing information.
“The housing market has cooled modestly in 2025,” Danielle Hale, chief economist at Realtor.com, stated in a press release on the report. “However the extent and persistence of rebalancing actually varies throughout the nation. And regionally, homebuyers and sellers are prone to expertise a really completely different market.”
Behind these notable worth variations is stock. Proper now, the housing market is basically divided into two camps, with greater stock within the South and West, the place deeper worth cuts may be discovered, and extra restricted stock within the Midwest and Northeast, the place worth modifications “stay comparatively tight,” based on the report.
“It is a provide and demand story, Jake Krimmel, senior economist at Relator.com and writer of the July 2025 report, instructed CBS MoneyWatch. “When you have got fewer properties on the market, and if there may be nonetheless adequate demand, that is going to possibly put upward stress on costs or forestall them from falling.”
Cities the place costs are falling
The most important declines in median itemizing costs in 2025 are typically concentrated within the South and West, the place all 19 of the 50 largest U.S. metro areas with median housing costs beneath July 2022 ranges are situated.
“After years of intense competitors, it is beginning to really feel extra balanced — particularly within the South and West,” Gary Ashton, founding father of The Ashton Actual Property Group of RE/MAX Benefit stated in a press release on the Realtor.com report. “It isn’t a purchaser’s market but, however we’re headed in that path.”
The cities that noticed the most important declines in worth had been Austin, the place median itemizing costs have fallen practically 15% during the last three years; and Miami, the place costs have dropped round 19%.
In line with Krimmel, stock is rising in these markets resulting from the truth that properties are staying in the marketplace longer, extra residence sellers are lowering costs and new listings are climbing.
A growth in constructing additionally boosted housing provide in these areas in the course of the COVID-19 pandemic, when demand for markets like Austin, Denver and Florida exploded, he added.
Austin, Los Angeles and Miami noticed the most important declines in median itemizing worth over the previous 12 months, though costs in Los Angeles stay greater than 18% above the median itemizing worth in 2022.
Cities the place costs are rising
Housing markets in cities in Northeast and Midwest stay squeezed, based on Krimmel, resulting from “sticky excessive” costs, and tight stock, stated Krimmel. Different contributing elements embrace stricter zoning and land use regulation legal guidelines that making constructing new homes harder, he stated.
In New York, for instance, median itemizing costs have climbed roughly 16% since 2022, based on the report. Median itemizing costs in Milwaukee elevated 26%.
Moreover, the variety of energetic listings per 30 days within the Northeast continues to be 50% beneath pre-pandemic ranges, based on Krimmel. The variety of energetic listings within the Midwest is down 40%, pointing to a list scarcity in each areas, he stated.
Whereas median itemizing costs have gone down during the last 12 months in northeastern cities like Boston and Philadelphia, which noticed 1.4% and 1.2% decreases, respectively, median costs stay at the least 10% above these from 2022.
“To the extent that there are falling costs within the Northeast and the Midwest, for probably the most half it is fairly modest numbers,” stated Krimmel.
Mary Cunningham