It’s been a tough market for homebuyers in recent years, but things are finally looking up.
That’s according to a report from Redfin, which found that in the last week of July, the median home-sale price declined in 14 of the 50 most populous US metros. Oakland, California, saw the largest year-over-year decline at 6.8%, followed by West Palm Beach, Jacksonville, Austin, and Houston at 4.9%, 3.1%, 2.9%, and 2.8%, respectively.
Nationally, the median home price increased by 2% year-over-year in July — but it’s still down from the 5% to 6% gains seen in late 2024 and early 2025. By year’s end, Redfin economists expect a 1% annual decline in the national median price.
“Home prices are starting to dip because high mortgage rates have pushed many buyers out of the market, weakening demand,” Redfin chief economist Daryl Fairweather told Business Insider.
After years of buyer demand outpacing housing supply, the dynamic has flipped in some cities. According to Redfin, many areas now have more homes for sale than buyers. As a result, properties are sitting on the market longer, and many sellers and homebuilders are finding it more difficult to close deals.
Those who can still afford to buy are benefiting, as motivated sellers are cutting asking prices and, in many cases, offering incentives or concessions to help buyers reach the finish line.
“With fewer buyers in the market, some sellers are more willing to negotiate on price and terms — but others are choosing to delist rather than sell for less. That dynamic is giving buyers a bit more leverage, but it’s also keeping inventory tight,” Fairweather said.
An April report from Redfin shows that home sellers offered concessions in 44.4% of home sales in the first three months of 2025 — a near record high. Concessions can look like a home seller covering repair costs, helping a buyer with down payment or closing expenses, or giving them money to offset higher mortgage rates.
Anna Lagos, a San Antonio real estate agent with Our Texas Real Estate, told Business Insider that buyers in her market definitely have more bargaining power.
“It’s become much harder for homeowners to sell their existing properties,” Lagos said, adding that she’s seen some sellers offer as much as $10,000 to buy down a buyer’s mortgage rate.
Lagos said that home builders are feeling the pressure, too.
“I’m seeing a lot of price reductions,” she said. “One of my clients needed to move right away. The homebuilder offered to start construction as soon as possible and cut the asking price by about $30,000 to $40,000.”
So if you’re in the market for a new home, now might be the time to jump in — or at least see what you can negotiate.
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