Are Home Prices Dropping? In a Fractured National Market, It Depends on Where You Live

Core Insights - The national housing market is experiencing a cooling trend, with significant regional variations in the pace and severity of the slowdown [1][2] - The South and West regions are shifting towards buyer-friendly conditions, while the Northeast and Midwest remain tighter, indicating a widening divide in market dynamics [2][3] Regional Analysis - South and West: These regions are seeing increased inventory, deeper price cuts, and longer time on market, with 23% of listings experiencing price reductions [2][7] - Midwest and Northeast: These areas maintain stronger pricing power for sellers, with less inventory relief and only modest price changes [2][3] Price Trends - Nationally, 33 of the 50 largest metros reported year-over-year price declines, with notable decreases in Austin (-4.9%), Miami (-4.7%), and Chicago (-4.4%) [1][3] - Miami's median list price is now 17.8% lower than its peak in July 2022, while Los Angeles prices are 18% higher than the same period [4] Inventory and Listings - Active listings rose by 25.1% year-over-year, marking the 21st consecutive month of increases, although the growth rate is slowing [11] - The number of homes for sale exceeded 1.1 million, with inventory still 13.4% below typical levels from 2017-2019 [11] Delistings and Market Dynamics - Delistings surged by 48% year-over-year, indicating sellers are retreating from the market when unable to achieve desired prices [10] - The delisting-to-new listing ratio increased to 0.21, suggesting a growing trend of sellers removing listings without a sale [10] Summary of Key Metrics - The median listing price nationally is $439,450, reflecting a 0.5% increase year-over-year [12] - Homes are taking an average of 58 days to sell, which is 7 days longer than last year [12] - The share of active listings with price reductions stands at 20.6%, marking a slight decrease from the previous month [12]