Home prices are being slashed across the US as the housing market cools — with one city seeing them plunge almost seven percent.
In July, prices dropped year-over-year in 14 of the 50 most populous US cities — with Florida, California and Texas hit hard, reports Redfin.
'Sellers need to come to terms with two things,' said Redfin agent James Gulden. 'Homes are going to sit longer, and buyers are gaining the upper hand.'
Homes are now lingering for weeks or months — a stark contrast to the red-hot days of bidding wars and same-day offers.
Sellers are being told to 'be realistic' and cut prices if they want to sell.
The good news is the lower prices combined with a new, slightly lower mortgage rate means buyers can finally make a move.
The national median sale price dropped to a five-month low in July, and Redfin economists expect a 1 percent national decline by the end of 2025.
It's a sign that sellers are slashing prices from the start or offering concessions like HOA fees, covered closing costs, and repair credits to get deals done.
Gulden said: 'I advise my sellers to be realistic about the price they're going to get. I'm also reminding sellers to be patient and not panic.
'Sure, many homes have been selling within a week for the last several years, but that's not historically normal.
'They have to reorient themselves to the fact that it may take several weeks, or more, before receiving an acceptable offer.'
Five cities are being hit the hardest with price drops. Oakland, CA, led the downturn with a 6.8 percent plunge in median home-sale prices compared to last year. The median home sale price is now $850,000.
Austin, TX, saw a 2.9 overall price cut from a year ago to its current $439,985, while Houston, TX, saw an average price drop of 2.8 percent to $343,492.
In Florida, the market is still bleak. West Palm Beach had an overall 4.9 percent price drop to an average sale price of $475,625, while Jacksonville saw a 3.1 percent drop to an average home sale price of $372,375.
Many hesitant buyers are holding out for it to get even worse, leaving homes on the market for a longer time.
In West Palm Beach, properties are sitting unsold for a staggering 93 days on average — the slowest pace of all 50 cities. That's 18 days longer than the same period in 2024.
Pending sales are also down 1.4 percent year over year, while the supply of homes for sale is up 7.7 percent in West Palm.
Nationwide, it doesn't get much better for sellers.
Although the median US home-sale price is up 2 percent annually to $398,700— just shy of a record high — it's far off from the 5 percent to 6 percent increases seen in late 2024 and early 2025.
In the first three months of this year, 16.2 percent of homes sold included both a price drop and a seller concession — up from 13 percent the year before.
Both are indicators sellers are taking steps to make homes more attractive.
Buyers, make your move.
