Home prices are easing across much of the United States as the housing market cools, according to a new analysis from Realtor.com. The national median listing price per square foot slipped 1.8% from a year earlier in August, marking the tenth consecutive month of year‑over‑year declines.
Markets with the sharpest drops
Austin recorded the largest decline, with prices per square foot down 8.1% from August 2025. Tampa followed with a 5.6% drop, and Memphis fell 4.1%. Other metros with notable declines included San Antonio (‑3.6%), Denver (‑3.4%), Baltimore (‑3.2%), San Diego (‑2.7%), Orlando (‑2.6%) and Portland, Oregon (‑2.4%).
Why the slowdown?
Realtor.com senior economist Jake Krimmel said the markets seeing the biggest drops were those that experienced a rapid boom from 2020 through 2022. “These are also, by and large, places with much more inventory now than pre‑pandemic norms,” Krimmel explained, noting that a surge in available housing is easing price pressure.
Elevated mortgage rates continue to strain affordability, prompting sellers in many areas to reduce asking prices to attract buyers. The analysis found listing prices per square foot fell in 36 of the nation’s 50 largest metropolitan areas.
Regional trends
Price declines were not uniform. The Northeast saw a 3.6% drop, the South fell 2.6%, and the West declined 2.1% year over year. The Midwest was essentially unchanged.
Markets posting gains
Some cities bucked the trend. Providence, Rhode Island, posted the largest increase, with listing prices per square foot up 9.3% from a year earlier. Indianapolis rose 4.4% and Chicago climbed 3.6%.
San Francisco, while still seeing a 3.9% year‑over‑year decline, remained competitive. Active listings were down 16.3% in July compared with a year earlier, and the median listing price held at $908,700, only 5.2% lower than a year ago. Krimmel cautioned that the price‑per‑square‑foot metric can be affected by the mix of homes on the market, noting fewer small, high‑priced homes were available this year.
What’s next?
The data suggest the housing market is adjusting after the pandemic‑era surge, with higher borrowing costs and increased inventory giving buyers more choices and reducing some of the pricing pressure that defined the boom years. The trend varies sharply by metro area, and while national prices are declining, several markets continue to post annual gains.
Original reporting: WOWO News/Talk (Fort Wayne) — read the source article.
