MW Home prices are falling in these cities, as high mortgage rates weigh on buyers

By Aarthi Swaminathan

Nearly a quarter of listings on Zillow had a price cut, company says

In the thick of the busiest season for the real-estate industry, home prices are falling in some cities as high mortgage rates hammer those local markets.

Homeowners are struggling to sell in markets including California, Texas and Florida amid economic uncertainty and high interest rates.

Buyers are pulling back due to sharply rising rates. Over the last week, mortgage rates posted the biggest one-week jump in a year, rising 21 basis points to 6.83%, according to new weekly data from Freddie Mac. Higher rates translate to higher monthly housing costs, which is making some potential buyers rethink their plans. Applications for mortgages to purchase homes are down in the latest week.

Read more: Mortgage rates soar, prompting home buyers to seek refuge in adjustable-rate loans

Rates are up because of the unstable economic environment in the United States. The jump is due to market volatility, geopolitical tensions and uncertainty over tariffs imposed on imported goods by the Trump administration, Samir Dedhia, chief executive of One Real Mortgage, said in a statement.

Homes are taking a lot longer to find buyers. The typical home that went under contract in March was on the market for 47 days, real-estate brokerage Redfin $(RDFN)$ said, which was the longest period for that month in six years.

As a result, some sellers are cutting prices to attract interest. About 24% of homes listed had a price cut in March, real-estate platform Zillow (Z) said, which was the highest share in seven years.

Among the 50 most populous metropolitan areas in America, these are the markets where the median sale price in March was lower than in the same period a year ago, according to Redfin data.

   Metropolitan area      Price change  Median sale price 
   Jacksonville, Fla.     -3.80%        $360,675 
   San Francisco, Calif.  -2.60%        $1,510,000 
   Austin, Texas          -1.60%        $442,900 
   Dallas, Texas          -1.40%        $419,134 
   Oakland, Calif.        -1.00%        $980,000 
   West Palm Beach, Fla.  -0.30%        $508,500 
   Tampa, Fla.            -0.10%        $369,734 

The median price of a home sold in the U.S. March was $431,057, up 2.5% from a year ago.

-Aarthi Swaminathan

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April 17, 2025 13:15 ET (17:15 GMT)

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