Unfortunately, theyre still going up in the other half
of ConsumerAffairs-
27 major metros are in buyers' favor or neutral, up from 24 last month.
-
The median for-sale home has been listed for 60 days, the longest of any July in Zillow data.
-
Sellers cut prices on 27.4% of listings, a record high in Zillow data that stretches through 2018.
They say all politics is local. So is real estate. Property values may go up in one area and not in another.
That appears to be the current situation, according to Zillows latest market report. The real estate platform reports the U.S. housing market is increasingly divided, with home values climbing in some of the nations largest metros while dropping sharply in others.
The report found property values fell year-over-year in half of the 50 biggest markets particularly in the South and West while remaining steady or rising modestly elsewhere.
Not quite a buyers market
The report highlights a rare shift in bargaining power toward buyers. Record numbers of sellers are cutting prices, and listings are lingering longer on the market. Nationwide, 27.4% of listings saw price cuts in July the highest level since Zillow began tracking in 2018.
At the same time, competition among buyers is easing, with nearly 30 markets now balanced or favoring buyers.
But the markets where values are falling tend to be where prices rose the most during the pandemic, meaning affordability remains a major roadblock. The typical U.S. home is valued at $367,965, up just 0.2% from last year. Lower interest rates and flat prices have shaved $19 off average monthly mortgage payments, but the typical bill is still nearly $1,000 higher than before the pandemic.
Perhaps more than ever, whether its a good time to buy depends on where you live, said Kara Ng, senior economist at Zillow. Buyers are gaining leverage they often cant use because cost barriers are too high. Where builders have kept up with demand, affordability is improving showing how critical new construction is.
Midwest and Northeast hold firm
Markets in the Midwest and Northeast are showing the strongest resilience. Cleveland (4.7%), Hartford (4.5%), Louisville (3.9%), Detroit (3.8%), and Buffalo (3.7%) posted the highest year-over-year gains. These increases, however, are tame compared to the double-digit surges seen during the pandemic.
In many of these metros, supply remains tight, as building restrictions and a lack of move-up options limit inventory. That scarcity is helping keep prices stable.
In contrast, Florida and Texas once pandemic-era housing hot spots now lead the nation in price declines. Tampa (-6.2%), Austin (-6.0%), Miami (-4.6%), Orlando (-4.3%), and Dallas (-3.9%) all saw steep drops in typical home values.
These metros also saw the largest growth in inventory compared to pre-pandemic levels, driven by robust new construction. Builders in the South, facing fewer land-use restrictions, were able to ramp up supply quickly when demand spiked. While that has restored some balance, buyers in expensive West Coast markets such as San Francisco and San Diego still face affordability hurdles despite modest declines.
Slowing sales
The pace of sales is slowing nationwide. Homes that sold in July went under contract in 24 days, six days slower than a year ago. But the median age of all listings stretched to 60 days, the widest gap between hot listings and stagnant ones since Zillow began tracking.
To stand out, real estate professionals say sellers need to price competitively and embrace digital-first marketing. Features like interactive floor plans and 3D tours can help buyers evaluate homes before visiting in person.
Posted: 2025-08-20 13:22:26
