Home Prices Drop in 33 Major Metros—and Pandemic-Era Boomtowns and Coastal Cities Take the Biggest Hit

The national market is gradually tilting in favor of buyers with home prices dropping in a staggering 33 of the 50 biggest metros. Leading the pack are pandemic-era boomtowns and popular coastal destinations.

Economists at Realtor.com® have found that the number of housing markets that have experienced a decline has ticked up from 32 in June and from 29 a year ago, according to the July 2025 Monthly Housing Trends Report.

“As markets tilt more buyer-friendly and sellers feel the pressure, list prices tend to follow,” says Realtor.com senior economist Jake Krimmel.

he national market is gradually tilting in favor of buyers with home prices dropping in a staggering 33 of the 50 biggest metros. Leading the pack are pandemic-era boomtowns and popular coastal destinations.

“As markets tilt more buyer-friendly and sellers feel the pressure, list prices tend to follow,” says Realtor.com senior economist Jake Krimmel.

Miami housing market falters

Some 1,300 miles to the east, the COVID-19-era destination of Miami has seen its previously red-hot housing market cool down over the past few years, with the city’s median list price dropping 4.7% from a year ago, to $509,950 in July.

“Miami, like the rest of Florida, is a challenging market right now,” Cara Ameer, a real estate agent licensed in both Florida and California, tells Realtor.com.

Since the peak year of 2022, Miami has experienced the biggest drop-off in home prices among the top 50 metros, amounting to 17.8%.

According to Ameer, elevated prices, high mortgage interest rates, and soaring insurance costs and monthly condo fees have all contributed to the Miami market’s slowdown as affordability took a major hit.

The typical for-sale property in Miami lingered on the market for 88 days in July, up 16 days compared with a year ago—and 30 days longer than the national median.

“There is an abundance of properties to choose from, and while there are always plenty of luxury buyers eyeing Miami real estate, particularly to own a home in a state that offers warm weather, lifestyle, an international flair with no income tax, for the average buyer, their purchasing power has definitely been impacted,” adds Ameer.

The agent says that priced-out would-be buyers are abandoning Miami for the more affordable Northeast Florida, or moving out of state altogether.

“Some second-home owners that own condos or homes are selling due to high overhead as it no longer makes sense to keep throwing money away on high fees,” says Ameer. “As a result of all of these factors, inventory has built up, which has caused a decline in prices.”

The bottom line in Miami, according to the agent, is “there are simply less buyers actively looking to buy”—and those buyers who are there are in no rush to make a decision.

Krimmel, however, points out that at the height of the COVID-19 pandemic, both Miami and Austin saw home prices soar by more than 55%. What’s happened since is a predictable rebalancing of these overheated markets.

“These are classic pandemic boom markets, where skyrocketing housing demand simply could not go on forever—especially with interest rates so high for this long,” he explains. “The new construction that came online to meet that demand is now helping to push inventories higher, too.”

Faced with expanded supply and lagging buyer demand, sellers are finding themselves under pressure, and so prices are adjusting accordingly, according to Krimmel.

Chicago and L.A. tell a different story

Chicago saw the nation’s third-largest annual home price drop of 4.4%, settling at $377,000 last month.

However, the price per square foot there remained flat year over year, time on the market kept steady, and listings did not experience a dramatic spike.

In addition, since 2022, the typical home in Chicago has actually increased in price by nearly 8%.

“That suggests there is still solid demand under the surface to backstop prices from falling significantly further,” explains Krimmel. “Sellers are probably not under much pressure.”

The perennially high-priced Los Angeles came in fourth on the list, with the city’s median list price edging down 4.2% year over year, to $1,148,000 in July.

Like with Chicago, that number does not tell the whole story. Since 2022, the popular West Coast metro has seen its home prices surge 18.4%.

The typical property in Tinsel Town waited for a buyer a little over 50 days in July, up 8 days compared with a year ago.

“In the cases of Chicago and Los Angeles, falling prices might be a more temporary blip or driven by certain market segments, housing types, or areas within a metro,” says Krimmel.

Denver saw its median list price shrink by 4% from July 2024, down to $600,000.

Notably, nearly a third of all listings in the Mile High City offered price reductions due to declining buyer demand—the biggest share among the top 50 metros.

Phoenix, Sacramento, CA, Nashville, TN, Minneapolis, and Cincinnati all saw local home prices retreat from a year ago by more than 3%.

But when compared with 2022 levels, two of those markets—Minneapolis and Cincinnati—experienced price hikes of 2.4% and 9.7%, respectively.

Nashville stood out for going through the biggest slowdown, with the typical home there lingering on the market 20 days longer in July 2025 than a year ago.

Home inventory rises, but growth pace slows

The national stock of for-sale homes increased 24.8% year over year, marking the 21st consecutive month of growth—and the third month with over a million active listings, according to the latest monthly report.

But the pace of growth is beginning to stagnate, with active listings climbing in July by more modest margins than in May and June.

The West saw the fastest inventory growth, followed by the South, while the Midwest and the Northeast continued to lag.

Among the 50 largest markets that recorded annual inventory growth, Las Vegas led the way with a 65.7% jump in active listings, followed by Washington, DC, with 56.5%, and Raleigh, NC, with 45.4%.

New listings, meanwhile, grew 7.3% from July 2024, but retreated for the third month in a row.

“Typically, new listings ramp up through May or even June, but this year’s spring home listing season never quite took off, perhaps an indication that sellers—like buyers—are still hesitant to make a move,” says Realtor.com Chief Economist Danielle Hale.

Raleigh saw the biggest surge in fresh listings in July compared with last year, adding 21.3% new homes.

Nashville came in second, with a 20.7% increase in newly listed properties, followed by Houston, with 15.7%.

Meanwhile, the total number of unsold homes in the U.S., including those under contract, was up 16.9% compared with last July, while pending sales saw a 3% annual drop.

In July, the national median list price was $439,450, up 0.5% compared with a year year.

The share of listings with price cuts ticked down to 20.6% since June, marking the first monthly decrease so far this year.

The typical home waited for a buyer for 58 days last month, seven days longer than a year ago.

“Overall, the market continues its slow and steady rebalancing heading into summer,” says Hale.

Regionally, the West saw the biggest annual increase in days on the market (+10), followed by the South (+8). In the more competitive markets of the Midwest and Northeast, the typical home waited for a buyer three extra days and two extra days, respectively.