U.S. Home Prices Edge Down 0.1% in June, With Declines in Most Major Metros, Led by Washington, Austin and San Diego

• U.S. home prices were down slightly in June for the third consecutive month. Prices rose 3.4% year over year, the slowest rate since June 2023.
• 30 of the 50 most populous U.S. metros recorded a drop in home prices month over month. 
• Prices fell most in Washington, D.C. (-1.8%), where home prices have been falling by at least 1.5% for three straight months amid federal government job cuts. 

U.S. home prices ticked down 0.1% in June from a month earlier—the third consecutive month that prices were slightly down on a seasonally adjusted basis. On a year-over-year basis, home prices rose 3.4% , the lowest rate since June 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.  June data covers the three months ending June 30, 2025. Read the full RHPI methodology here.

For much of the past two years, prices ticked up slowly nationwide because there were just enough buyers to create competition for the relatively low number of homes on the market. 

This year, however, home price growth has stalled as a surge in housing supply met weak demand, with sellers greatly outnumbering buyers, who have been deterred by elevated mortgage rates and steep prices. 

“Home prices are slipping a little more each month as sales activity remains sluggish. June was the second month in a row where more than half of the 50 most populous U.S. metros posted a decline in prices,” said Redfin Senior Economist Sheharyar Bokhari. “Even with more homes for sale, high mortgage rates are keeping many buyers—and more recently sellers—on the sidelines. We expect prices to fall about 1% by the end of the year as low demand continues to weigh on the market.”

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

In Washington, D.C., home prices fell 1.8% in June, the third month in a row that prices posted a month-over-month decline of at least 1.5% on a seasonally adjusted basis. It was the metro area’s second-biggest decline posted since the RHPI began in 2012, trailing only the 1.9% drop one month earlier in May.

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Home prices in the nation’s capital still rose 2.9% year over year—but that was a substantial drop from the 10.9% annual growth rate being observed as recently as March. That was the biggest change in annual growth of any of the top 50 most populous metros since March.

The housing market in Washington has been shaken by a series of widespread federal government job cuts: at least 50,000 federal workers have been laid off or targeted for layoffs. Funding cuts for other government programs, like foreign aid programs, has also had an impact on non-government workers in the capital.

Marshall Park, Redfin’s senior market manager in the Washington, D.C. metro area, said the market has slowed—especially in the condo market—with homes taking longer to sell as inventory rises.

“We’ve moved from a bidding war environment to one that demands strategic pricing, thoughtful staging, and the right updates to make a home truly appealing,” he said.  “Federal job cuts are certainly a contributor—some sellers are listing due to buyouts or early retirements, which is adding to inventory. But it’s not just layoffs. We’re also seeing signs of price sensitivity as higher interest rates force buyers to reevaluate what’s affordable.”

Thirty of the 50 metros recorded a fall in home prices month over month in June.

Behind Washington, the next biggest decline was in Austin, TX (-1.5%), followed by San Diego (-1.4%). 

Prices increased most from May in Montgomery County, PA (0.6%), Providence, RI (0.5%) and New York (0.5%).

On a year-over-year basis, prices in New York (11.7%) rose the most, followed by Philadelphia (11.2%) and Detroit (9.4%). 

At the other end of the spectrum, Tampa, FL posted a 4.5% decline in prices from a year ago—the biggest drop of any major metro. Next came Austin, TX (-3.5%) and Dallas (-2%).

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