Home Prices Grow at Slowest Pace in Nearly 2 Years
- Home prices, while at a record high for this time of year, are growing at the slowest clip since 2023 because sellers outnumber buyers. Active listings hit a 5-year high in May, while existing-home sales hit a 7-month low.
- It took 38 days for the typical home to go under contract—the slowest May pace since 2020—and sales were canceled at the highest May rate on record.
- Florida’s housing market saw the biggest slowdown in sales and the biggest uptick in days on market. The Midwest is holding up relatively well when it comes to sales, while the Northeast is holding up best when it comes to prices.
The median U.S. home-sale price rose 0.7% year over year in May—the slowest growth since June 2023. Still, last month’s median sale price of $440,997 was the highest of any May in records dating back to 2012.
Redfin recently predicted that home prices will start falling on a year-over-year basis by the end of 2025. That has already happened in 11 of the 50 most populous U.S. metropolitan areas, with Oakland, CA (-6.7%), Jacksonville, FL (-5.2%) and Dallas (-4.6%) leading the declines in May.
Home Price Growth Is Cooling Because Sellers Outnumber Buyers
U.S. home price growth is slowing because there are significantly more home sellers than buyers in today’s market—the result of prohibitively high homebuying costs and economic uncertainty.
Existing-home sales came in at a seasonally adjusted annual rate of 4.21 million in May, the lowest level since October, as mortgage rates remained elevated near 7%. Existing-home sales, overall home sales and pending sales were all little changed from both a month earlier and a year earlier.
Meanwhile, the supply of homes for sale (active listings) hit the highest level since March 2020, rising 0.7% month over month on a seasonally adjusted basis and 16.2% year over year. Active listings are climbing because the mortgage rate lock-in effect is easing, but also because homes are taking longer to sell, causing stale inventory to pile up. The typical home that went under contract in May did so in 38 days—nearly a week longer than a year earlier and the slowest May pace since 2020. This is roughly how long it took homes to sell before the pandemic.
“The market has been shifting in buyers’ favor, but it doesn’t feel that way to many Americans because homebuying costs remain near record highs,” said Redfin Senior Economist Asad Khan. “Buyers may gain more negotiating power in the coming months as more sellers face a tough reality: Sellers no longer hold all the cards.”
Less than one-third (31.2%) of homes that sold in May went for over their asking price, the lowest May share in five years, signaling buyers have already gained some bargaining power.
Redfin agents say that as the balance of power shifts toward buyers, it’s important for sellers to make sure their homes are priced fairly and in good condition. Agents also advise buyers not to rule out homes that are just beyond their budget, as sellers may be willing to come down on price or offer concessions.
New Listings Are Losing Steam
While active listings rose in May, new listings fell 2.9% month over month on a seasonally adjusted basis, and rose 2.9% year over year—the slowest annual growth since November.
“We’ve hit a plateau with home prices. A lot of homeowners are considering renting their homes out instead of selling,” said Rob Wittman, a Redfin Premier real estate agent in the Washington, D.C. area. “The buyers who come through on tour these days have little urgency. They’re often browsing instead of buying because they’re hoping mortgage rates will come down, even though that’s unlikely to happen soon.”
Redfin predicts mortgage rates will remain near 7% for the rest of the year.
Some Home Purchases Are Falling Through as Buyers Get Cold Feet
Roughly 59,000 home-purchase agreements were canceled in May, equal to 14.6% of homes that went under contract that month. That’s the highest May percentage in records dating back to 2017 and is up from 14% a year earlier.
Florida and Texas, which have seen their housing markets slow considerably in recent months, had the highest rate of cancellations among the major metros Redfin analyzed. San Antonio came in first (21.3%), followed by Orlando, FL (20%) and Jacksonville, FL (19.7%).
Please note that homes that fell out of contract during a given month didn’t necessarily go under contract the same month. For example, a home that fell out of contract in May could have gone under contract in April.
May 2025 Housing Market Highlights: United States
| May 2025 | Month-over-month change | Year-over-year change | |
|---|---|---|---|
| Median sale price | $440,997 | 0.6% | 0.7% |
| Existing-home sales, seasonally adjusted annual rate | 4,206,157 | 0.0% | -0.3% |
| Pending home sales, seasonally adjusted | 478,047 | -0.4% | 0.7% |
| Homes sold, seasonally adjusted | 427,418 | 0.1% | -0.6% |
| New listings, seasonally adjusted | 546,228 | -2.9% | 2.9% |
| Total homes for sale, seasonally adjusted (active listings) | 1,960,258 | 0.7% | 16.2% |
| Months of supply | 3 | -0.2 | 0.6 |
| Median days on market | 38 | -2 | 6 |
| Share of homes that sold above final list price | 31.2% | 0.9 ppts | -3.8 ppts |
| Average sale-to-final-list-price ratio | 99.4% | 0.1 ppts | -0.5 ppts |
| Pending sales that fell out of contract, as % of overall pending sales | 14.6% | 0.8 ppts | 0.6 ppts |
| Monthly average 30-year fixed mortgage rate | 6.82% | 0.09 ppts | -0.24 ppts |
Note: Data are subject to revision
May 2025 Metro-Level Highlights: Home Sales Sink in Miami
The figures below are based on a list of the 50 most populous U.S. metropolitan areas. Some metros may be removed from time to time to ensure data accuracy. Refer to our metrics definition page for explanations of metrics used in this report. Metro-level data are not seasonally adjusted. All changes below represent year-over-year changes.
Sales
- Pending sales rose most in the Midwest: Cincinnati (8.2%), Indianapolis (6.7%) and Milwaukee (6.6%) saw the biggest increases. Six of the 10 metros where pending sales rose fastest are in the Midwest, which has attracted homebuyers because it’s relatively affordable.
- Pending sales fell most in Florida: Miami (-19.6%), Fort Lauderdale, FL (-16.9%) and Las Vegas (-12.8%) saw the biggest declines. Florida is home to four of the 10 metros where pending sales fell fastest.
- Closed home sales rose in just eight metros, with the largest increases in Providence, RI (4.5%), Indianapolis (3.3%) and Kansas City, MO (2.4%).
- Closed home sales fell most in Florida: Miami (-23%), San Jose, CA (-22.5%) and Fort Lauderdale (-19.4%) saw the largest decreases.
Prices
- Prices rose most in the Northeast: Philadelphia (10.9%), New Brunswick, NJ (8.4%) and Providence (7.7%) saw the biggest upticks. A relative inventory shortage may be fueling price gains in the Northeast.
- Prices fell most in Oakland, CA (-6.7%), Jacksonville, FL (-5.2%) and Dallas (-4.6%). Of the 11 metros where prices fell, four are in Texas, three are in California and two are in Florida. Housing markets across Florida and Texas have cooled rapidly amid a surge in homebuilding, rising insurance costs and extreme weather events.
Supply
-
- New listings rose most in Kansas City, MO (17.5%), Houston (10.1%) and Seattle (9.9%).
- New listings fell most in San Jose (-16.7%), Orlando, FL (-10.7%) and Jacksonville (-9.2%). Six of the 10 metros where new listings fell fastest are in Florida. New listings in parts of Florida are coming back down to earth after surging in recent months.
- Active listings rose most in Las Vegas (35.9%), Denver (30.2%) and Seattle (30.1%).
- Active listings fell in just one metro: Detroit (-0.2%). The smallest increases were in Nassau County, NY (1.9%) and Chicago (2.6%).
Speed/Competition
- Florida saw the biggest uptick in days on market: In Orlando, the typical home that went under contract did so in 51 days, up 19 days from a year earlier—the biggest increase among the metros Redfin analyzed. Next came Fort Lauderdale (+18 days) and Miami (+14 days).
- Days on market dropped in four metros: Kansas City, MO (-6 days), New York (-4), San Francisco (-2) and Philadelphia (-1).
- Homes were most likely to sell above their list price in Newark, NJ (69.1% of homes sold above list), San Jose (60%) and San Francisco (59.9%).
- Homes were least likely to sell above their list price in Florida: West Palm Beach, FL (6%), Miami (7.7%) and Fort Lauderdale (9.3%) had the lowest share of homes selling above list. Florida is home to six of the 10 metros where homes were least likely to sell above list.
Full Metro-Level Data: May 2025
| U.S. metro area | Median sale price | Median sale price, Y/Y change | Pending sales, Y/Y change | Homes sold, Y/Y change | New listings, Y/Y change | Active listings, Y/Y change | Median days on market | Median days on market, Y/Y change | Share of homes sold above list price |
|---|---|---|---|---|---|---|---|---|---|
| Anaheim, CA | $1,200,000 | -0.4% | -4.7% | -14.4% | -0.2% | 22.4% | 34 | 7 | 38.0% |
| Atlanta, GA | $400,000 | -1.2% | -1.1% | -6.2% | -5.1% | 16.8% | 40 | 11 | 23.2% |
| Austin, TX | $449,000 | -2.1% | -0.2% | -6.6% | 2.2% | 15.9% | 55 | 10 | 14.7% |
| Baltimore, MD | $410,000 | 3.8% | 1.4% | -5.7% | 3.6% | 15.6% | 24 | 5 | 45.4% |
| Boston, MA | $775,000 | 5.4% | 1.6% | 2.1% | -0.3% | 14.3% | 19 | 1 | 58.5% |
| Charlotte, NC | $417,055 | 1.7% | N/A | 0.2% | 9.2% | 25.2% | 49 | 8 | 21.4% |
| Chicago, IL | $377,750 | 6.4% | 3.6% | -5.5% | 2.2% | 2.6% | 47 | 0 | 47.0% |
| Cincinnati, OH | $310,000 | 3.3% | 8.2% | 0.2% | 4.5% | 12.0% | 37 | 2 | 36.3% |
| Cleveland, OH | $240,000 | 1.3% | 2.3% | -2.3% | 2.8% | 10.5% | 21 | 5 | 45.1% |
| Columbus, OH | $351,650 | 1.8% | 5.2% | -7.7% | 1.9% | 16.3% | 38 | 2 | 37.1% |
| Dallas, TX | $415,000 | -4.6% | 3.5% | -4.5% | 6.1% | 29.9% | 44 | 12 | 15.8% |
| Denver, CO | $600,000 | 0.0% | 0.0% | -4.7% | 0.5% | 30.2% | 18 | 6 | 28.5% |
| Detroit, MI | $215,000 | 7.5% | -4.7% | -4.6% | -0.3% | -0.2% | 18 | 1 | 40.9% |
| Fort Lauderdale, FL | $470,000 | 3.3% | -16.9% | -19.4% | -7.6% | 16.6% | 84 | 18 | 9.3% |
| Fort Worth, TX | $365,000 | 1.4% | -3.0% | -5.0% | 0.4% | 14.9% | 44 | 9 | 19.5% |
| Houston, TX | $339,000 | -1.7% | -1.4% | 2.3% | 10.1% | 20.7% | 41 | 9 | 15.1% |
| Indianapolis, IN | $316,000 | 0.0% | 6.7% | 3.3% | 8.6% | 15.9% | 15 | 4 | 23.8% |
| Jacksonville, FL | $365,000 | -5.2% | -2.7% | -8.1% | -9.2% | 11.9% | 67 | 12 | 12.4% |
| Kansas City, MO | $350,000 | 3.2% | N/A | 2.4% | 17.5% | 3.0% | 15 | -6 | N/A |
| Las Vegas, NV | $448,000 | 1.8% | -12.8% | -14.2% | 2.2% | 35.9% | 46 | 11 | 19.5% |
| Los Angeles, CA | $930,000 | 2.8% | -3.0% | -6.8% | 2.4% | 14.7% | 39 | 4 | 43.4% |
| Miami, FL | $570,000 | 6.5% | -19.6% | -23.0% | -3.1% | 21.3% | 82 | 14 | 7.7% |
| Milwaukee, WI | $350,000 | 3.9% | 6.6% | -2.4% | 1.0% | 3.0% | 38 | 1 | 55.7% |
| Minneapolis, MN | $399,000 | 3.1% | -2.7% | 0.1% | -0.1% | 4.2% | 20 | 0 | 44.5% |
| Montgomery County, PA | $509,990 | 5.2% | 3.6% | -2.8% | 6.1% | 10.8% | 20 | 4 | 53.1% |
| Nashville, TN | $480,000 | 3.0% | 2.0% | -10.8% | 4.0% | 17.7% | 54 | 10 | 14.9% |
| Nassau County, NY | $715,000 | 4.4% | -5.8% | -6.6% | -1.8% | 1.9% | 27 | 1 | 53.6% |
| New Brunswick, NJ | $580,000 | 8.4% | 0.1% | -1.5% | 3.4% | 11.8% | 28 | 2 | 52.3% |
| New York, NY | $790,000 | 5.3% | -9.4% | -6.4% | -2.0% | 4.0% | 49 | -4 | 32.9% |
| Newark, NJ | $625,000 | 4.7% | -1.0% | -5.4% | 0.8% | 4.8% | 20 | 0 | 69.1% |
| Oakland, CA | $980,000 | -6.7% | N/A | -12.7% | -0.7% | 28.5% | 18 | 5 | 54.2% |
| Orlando, FL | $419,000 | 3.0% | -6.1% | -9.6% | -10.7% | 17.7% | 51 | 19 | 13.1% |
| Philadelphia, PA | $310,500 | 10.9% | 1.9% | -8.6% | 0.3% | 4.7% | 36 | -1 | 32.2% |
| Phoenix, AZ | $467,995 | 0.6% | 0.0% | -6.4% | -1.8% | 26.5% | 56 | 6 | 14.4% |
| Pittsburgh, PA | $255,000 | 6.6% | 0.8% | -3.6% | -2.2% | 7.7% | 50 | 3 | 32.2% |
| Portland, OR | $570,837 | 1.9% | -2.8% | -6.5% | 3.1% | 17.5% | 17 | 4 | 36.3% |
| Providence, RI | $512,500 | 7.7% | 4.4% | 4.5% | 3.1% | 16.9% | 22 | 2 | 52.7% |
| Riverside, CA | $589,000 | 1.6% | -2.9% | -6.4% | -0.3% | 15.2% | 44 | 5 | 35.0% |
| Sacramento, CA | $595,000 | 0.5% | -6.5% | -7.6% | 3.1% | 25.8% | 20 | 7 | 37.6% |
| San Antonio, TX | $311,990 | -0.1% | -7.2% | -5.6% | -4.0% | 7.9% | 57 | 7 | 13.2% |
| San Diego, CA | $920,000 | -0.4% | -8.6% | -6.8% | -2.0% | 22.6% | 22 | 7 | 38.3% |
| San Francisco, CA | $1,600,000 | 2.6% | N/A | -3.4% | -2.6% | 3.3% | 15 | -2 | 59.9% |
| San Jose, CA | $1,700,000 | 3.0% | N/A | -22.5% | -16.7% | 4.6% | 15 | 5 | 60.0% |
| Seattle, WA | $850,000 | -1.2% | -2.0% | -10.8% | 9.9% | 30.1% | 8 | 2 | 34.4% |
| St. Louis, MO | $285,000 | 6.3% | N/A | -0.4% | N/A | N/A | 19 | 3 | 44.9% |
| Tampa, FL | $379,850 | -1.3% | -7.4% | -15.9% | -8.6% | 12.1% | 42 | 6 | 13.7% |
| Virginia Beach, VA | $372,000 | 5.4% | 1.6% | -0.8% | 4.8% | 15.4% | 25 | 4 | 38.8% |
| Warren, MI | $330,000 | 4.8% | -2.1% | -6.9% | 2.6% | 7.6% | 15 | 2 | 44.6% |
| Washington, D.C. | $610,000 | 3.4% | 3.2% | -6.2% | 8.6% | 24.5% | 31 | 8 | 41.1% |
| West Palm Beach, FL | $530,000 | 3.9% | -4.5% | -15.0% | -8.2% | 10.7% | 88 | 12 | 6.0% |
The post Home Prices Grow at Slowest Pace in Nearly 2 Years appeared first on Redfin Real Estate News.
Categories
Recent Posts
