House prices are dropping the most in southern and western cities, according to a new study.
Realtor.com, a real estate listings website, recently came out with its July 2025 Monthly Housing Market Trends Report, which showed a small decrease in list prices in the South and West while the national average remains slightly up from last year.
The national median list price in July was $439,990, according to the report.
The housing market took a big hit from the COVID-19 pandemic. Since June 2019, the average list price has risen by more than 37.6 percent.
But there are some cities in the country where home prices are dropping, with 33 of the nation’s top 50 metro areas experiencing a decline from July 2024 to this past July.
"In the South and West, we're seeing clear signs of a shift toward buyer-friendly conditions—more price cuts, rising delistings, and homes sitting longer on the market–which has led to sometimes sizable price adjustments since 2022,” Danielle Hale, Chief Economist at Realtor.com said in a statement.
Austin
Austin had the largest year-over-year price decline. The median list price in the city was $510,950 in July, down 4.9 percent from the same time last year.
Miami
The median list price in Miami was $509,950, down 4.7 percent from last year.
Chicago
In Chicago, prospective homebuyers could find the median list price to be $377,000, a 4.4 percent drop from the previous year.
Los Angeles
There was also a 4.2 percent drop in the median list price in Los Angeles to $1,148,483.
Denver
The median list price in Denver also decreased 4 percent from last year to $600,000.
Phoenix
Phoenix had a median list price of $505,000, down 3.8 percent from a year earlier.
Sacramento
In Sacramento, prospective homebuyers could find the median list price to be $625,000, a 3.8 percent drop from a year prior.
Nashville
The median list price was $544,950 in Nashville, down 3.5 percent.
Minneapolis
There was also a 3.2 percent drop in the median list price in Minneapolis at $435,000.
Cincinnati
Cincinnati had a median list price of $349,950, down 3.1 percent from last year.
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