The tides are shifting in the real estate market, with homebuyer demand declining even as listings rise in many of the nation’s 50 largest markets. The imbalance, according to Redfin’s June Home Price Index, has slowed annual home price growth to 3.4 percent — the lowest level seen since 2023.
On a monthly basis, home prices dropped 0.3 percent, continuing a descent that started in April.
Sixty percent of the largest markets experienced month-over-month declines in June, with the most pronounced drop happening in Washington, D.C. (-1.75 percent). The decline brings to fruition a fear that the nation’s capital is on the verge of a major market slowdown as the Trump Administration moves forward with massive department and job cuts.
The cuts threaten more than 50,000 federal workers and a number of non-government businesses and workers, as federal employees bolster much of the city’s economic activity.
“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,” D.C.-area Redfin Senior Market Manager Marshall Park said in the report. “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.”
Behind Washington, Austin, Texas (-1.49 percent), San Diego (-1.35 percent), Nashville (-1.13 percent), and Baltimore (-1.02 percent) logged the greatest monthly price declines. Meanwhile, Tampa (-4.53 percent), Austin (-3.48 percent), Dallas (-2.03 percent), Fort Worth (0.94 percent) and Phoenix (-0.40 percent) led the way in annual drops.
Sheharyar Bokhari
Redfin Senior Economist Sheharyar Bokhari said monthly price declines stem from mortgage rates, which are back on the climb. The average 30-year fixed-rate mortgage reached 6.79 percent on July 15, representing a 0.15 percent month-over-month increase and a 0.31 percent increase from a recent low of 6.48 percent recorded on April 3, 2025.
The increases are largely credited to the Trump Administration’s frequently shifting tariff policy, a previous Inman report explained.
“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,” Bokhari said in the report. “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 percent by the end of the year as low demand continues to weigh on the market,” he added.
Editor’s Note: A previous version of this story’s lede attributed the data to Realtor.com, not Redfin. We apologize for the mix-up.
