The 5 cities where home prices are dropping fast as the housing freeze causes inventory to pile up

Home prices are dropping in a handful of major US cities, creating opportunities for buyers.

A stuck housing market is causing inventory to pile up, putting pressure on prices.

Home prices are elevated nationally, but these five markets are seeing declines.

The housing market is still frozen over.

While that hasn’t translated into meaningful price declines nationally, there are a handful of areas where things look better for home buyers.

Redfin said the median sales price for a home dropped in 14 of the 50 most populous US metro areas in the last month. That’s largely due to the uncertainty hanging over the US economy, which is causing inventory to pile up in the market, Redfin said in its report.

“Sellers need to start coming to terms with two things: One, homes are more often going to sit on the market for longer than a week or two before they sell, and two, buyers are gaining the upper hand,” James Gulden, a Redfin agent based in Boston, said in a statement.

The median home prices notched an all-time high in June, touching $435,300, but some areas cooled in July.

Here are the top five cities that saw the steepest drop in median home sales prices in the four weeks leading up to July 27, according to Redfin.

Median sale price: $850,000 (June 2025)

YoY% drop in four-week period: -6.8%

Median sale price: $425,000 (June 2025)

YoY% drop in four-week period: -4.9%

Median sale price: $300,990 (June 2025)

YoY% drop in four-week period: -3.1%

Median sale price: $556,340 (June 2025)

YoY% drop in four-week period: -2.9%

Median sale price: $369,000 (June 2025)

YoY% drop in four-week period: -2.8%

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