U.S. Home Prices Edged Down 0.1% in May, Only the Fourth Monthly Drop in the Past Decade

• U.S. home prices in May ticked down 0.1% on a seasonally adjusted basis—only the fourth time in the past decade when prices have posted a monthly decline.
• Home prices rose 3.6% year over year—the first time annual growth has been below 4% since July 2023.
• 32 of the 50 most populous U.S. metros recorded a drop in home prices month over month, led by Charlotte, NC (-2.7%).

U.S. home prices edged down 0.1% in May on a seasonally adjusted basis. Home prices have only posted a month-over-month decline three other times in records dating back to 2012: April 2025, and August-September 2022—when mortgage rates were peaking.  

Home prices rose 3.6% on a year-over-year basis in May, down from 4.1% growth in April. It was the first time annual price growth has been below 4% since July 2023.

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This is according to the Redfin Home Price Index (RHPI), which uses the repeat-sales pricing method to calculate seasonally adjusted changes in prices of single-family homes. The RHPI measures sale prices of homes that sold during a given period, and how those prices have changed since the last time those same homes sold. It’s similar to the S&P CoreLogic Case-Shiller Home Price Indices, but is a month ahead—Redfin is releasing RHPI results today for May as Case-Shiller results are being posted for April.  May data covers the three months ending May 31, 2025. Read the full RHPI methodology here.

The homebuying market is cooling because sellers significantly outnumber buyers. 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. At the same time, pending sales are ticking down and inventory is still rising.

“Sellers are starting to feel pressure because many buyers have put their home search on pause in response to high housing costs, elevated mortgage rates and economic uncertainty,” said Redfin Senior Economist Sheharyar Bokhari. “More sellers are likely to adjust their price expectations in the coming months as they see examples of the market shifting in favor of buyers, like homes selling below asking prices. Still, home price trends are always local and some areas—particularly on the East Coast—continue to see strong growth.”

Metro-Level Summary: Redfin Home Price Index, May 2025

Prices fell from a month earlier in 32 of the 50 most populous metro areas on a seasonally adjusted basis in May.

The biggest decline was in Charlotte, NC (-2.7%), followed by San Francisco (-1.3%) and Seattle (-1.3%). Prices increased most in Nassau County, NY (2.1%), San Diego (1.6%) and Fort Lauderdale, FL (1.5%).

On a year-over-year basis, five major metros are still posting double-digit growth: New York (12.4%), Nassau County, NY (11.3%), Detroit (11.2%), Philadelphia (11%) and Chicago (10.2%). 

At the other end of the spectrum, Tampa, FL posted a 5.5% decline in prices from a year ago—the biggest drop of any major metro. Next came Austin, TX (-3.6%) and San Antonio, TX (-2.4%).

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