Housing markets with falling home prices just hit highest level since 2012

"Over the past year the supply-demand equilibrium-measured by shifts and levels in active housing inventory and months of supply-has shifted directionally in favor of homebuyers. That doesn't mean buyers have all the leverage, or that the picture is the same in every market. Directionally, however, homebuyers in most markets have gained leverage compared to the 2024 housing market. Among the nation's 200 largest metro-area housing markets: 62% saw home prices rise year over year from July 2024 to July 2025 38% saw home prices fall year over year from July 2024 to July 2025"

"Using forward-looking data, ResiClub expects that the share of housing markets with falling year-over-year home prices could rise a bit more in the coming months. For evidence, just look at the seasonally adjusted month-over-month data. Click here to view an interactive version of the chart below. Seasonally, home prices in most housing markets experience the most upward pressure between February and July, and the most downward pressure between September and January. To remove the seasonal noise and better observe the real trend, it's helpful to look at seasonally adjusted month-over-month home price changes. Among the nation's 200 largest metro-area housing markets: 44.5% saw seasonally adjusted home prices rise month over month from June to July 2025 55.5% saw seasonally adjusted home prices fall month over month from June to July 2025"

Supply-demand equilibrium in the U.S. housing market shifted directionally in favor of homebuyers over the past year, driven by changes in active inventory and months of supply. Among the 200 largest metro markets, 62% saw year‑over‑year price increases and 38% saw declines from July 2024 to July 2025—the largest share of metros with falling prices since October 2012. Most metros still report rising year‑over‑year prices, but the share with declines is increasing. Seasonally adjusted month‑over‑month data show 44.5% of metros with price gains and 55.5% with declines from June to July 2025. Forward‑looking indicators suggest the share of falling markets may rise further.

Read at Fast Company