Rising and Falling Home Prices

Housing Market Update: Is the Tide Turning for Homebuyers?

If you’ve been watching the housing market, you might have noticed a shift. According to the latest data from Homes.com, home prices in April either stagnated or dropped in 15 of the nation’s 40 largest markets—a sign that the red-hot seller’s market of the past few years could finally be cooling off.

Slower Growth, More Choices

Last month, prices for single-family homes, townhouses, and condos rose just 1.3% compared to April 2024. That’s the slowest pace we’ve seen in over a year, and it marks the fourth month in a row that price growth has decelerated. The median price for all home types across the nation hit $385,000 in April—only $5,000 more than a year ago.

For buyers, this is welcome news. After years of rapid price increases, the market is showing signs of balance. There are more homes on the market, giving buyers more options and a bit more negotiating power.

Erika Ludvigsen, national director of residential analytics at CoStar, explains: “The moderation in prices is largely due to increased inventory and elevated mortgage rates, which have tempered buyer demand. While single-family home prices are still inching up, townhome prices have dipped, and condo prices are holding steady—offering some relief to those looking to buy.”

Where Are Prices Falling?

The slowdown is most noticeable in the Sun Belt. In April, 15 of the 40 largest markets saw either flat or declining prices—up from just six markets in March. This trend first appeared in February, especially in parts of the Southeast and California, and has since spread across states like Texas, Arizona, Florida, Tennessee, and North Carolina.

Cincinnati and Columbus, Ohio, led the pack with the steepest price drops, down 4.5% and 4.6% respectively. San Antonio also saw a 3.1% year-over-year decline.

Where Are Prices Still Rising?

Not everywhere is cooling off. The Northeast and parts of the Midwest are still seeing strong price growth. New York and Boston both posted a 10.8% jump in home prices compared to last April. Cleveland wasn’t far behind with a 10.5% increase, and Chicago saw prices rise by 7.5%.

What’s driving these differences? Melina Duggal, senior director of market analytics at CoStar, says it comes down to local economics. “The Northeast remains strong due to tight inventory and robust job markets, while the Sun Belt is seeing weaker growth because of increased inventory and affordability challenges.”

What Does This Mean for You?

If you’re thinking about buying, selling, or just keeping an eye on the market, these trends are worth watching. The days of runaway price growth may be behind us—at least for now. As always, local conditions matter, so be sure to check what’s happening in your area.

Stay tuned to our website for more updates and insights on the ever-changing real estate landscape!