Good News for Buyers: Home Prices Begin to Slide in Key U.S. Cities

Jun 18, 2025

After seeing home prices rise and very few options available for years, buyers might find relief. Recent statistics indicate that some of America’s largest cities are experiencing a reversal in rising home prices, which may signal a new phase in the real estate market since the pandemic.

Home Prices See First Monthly Decline in Over Two Years

For the first time since the pandemic-era boom began, home prices in the 20 largest cities fell by 0.12% in March 2025, according to new data.

Key markets seeing notable price dips include:

Phoenix, AZ
Tampa, FL
Jacksonville, FL
Austin, TX
Las Vegas, NV

Why Prices Are Dropping

Various factors are contributing to this downward trend:

1. High Mortgage Rates

Rates for 30-year mortgages are still close to 6.89%. More expensive loans are making buyers review their options and cut back, which lowers demand in the market.

2. Increased Inventory

The number of houses listed for sale is going up. In fact, during April 2025, there were significantly fewer buyers than sellers, giving those looking to buy more opportunities and some power in negotiations.

3. Seller Adjustments

Since there are fewer buyers bidding high and properties stay on the market for longer, sellers are inclined to reduce their asking price or provide help with closing costs or renovations.

What This Means for Buyers

If you haven’t managed to buy a home or were waiting for markets to drop, now might be the right time to enter the market.

Benefits for Buyers:

More choices: A bigger inventory allows you to choose carefully.
Better deals: More companies are now granting discounts and concessions to customers.
Negotiating power: The fact that there are not many developers means you can often negotiate better.

Mortgage rates have not yet dropped, which can increase what you pay each month. Remember to survey the long-term expense, not only the purchase price.

Expert Tip: Be Prepared, But Don’t Rush

Although it seems buyers are winning the market, there is still a complex picture. Cooperate with a real estate expert who knows the local real estate market and can assist you:

Look for ways to unlock value through innovation.
Find suitable ways to support your decision financially.
Handle negotiations well as the market grows and changes.

What’s Next?

The moderate price drop is predicted by analysts in markets where home prices are high. Still, because real estate is highly localised, the trends you see can be quite different from place to place, depending on jobs, homes available and movement of people.

Final Thoughts

Buyers are pleased that home prices have come down after a long period of quick rises and strong competition. Even with interest rates still high, larger inventories and flexible prices are making a difference.

If you are looking for a new home, you can benefit from this unique moment and handle your negotiations with renewed confidence.