U.S. home prices decreased by 0.1% in May 2025 on a seasonally adjusted basis, according to a report from Redfin, marking only the fourth monthly decline in single-family home prices since 2012. Previous drops were observed in April 2025 and during the mortgage rate peaks of August and September 2022.
The data comes from the Redfin Home Price Index (RHPI), which applies a repeat-sales methodology to track price changes of homes that have sold more than once. This most recent dip in home prices accompanies a broader shift in market dynamics, with buyer activity slowing and inventory levels rising.
Year-Over-Year Price Trends and Cooling Growth
Despite the monthly decline, home prices in May were still 3.6% higher than one year prior. However, this represents a deceleration from the 4.1% year-over-year increase recorded in April. May’s figure marks the first time annual growth has fallen below 4% since July 2023.
Redfin attributes this moderation in price growth to a mismatch between supply and demand. More homeowners are listing their properties while fewer buyers are actively pursuing purchases, influenced by factors such as high mortgage rates, affordability challenges, and broader economic uncertainty.
Only 31.2% of homes sold in May closed above their asking price—the lowest share for any May since 2019.
Regional Breakdown: Price Changes by Metro
Out of the 50 largest U.S. metro areas, 32 recorded month-over-month declines in home prices in May. The steepest drops occurred in:
- Charlotte, NC: -2.7%
- San Francisco, CA: -1.3%
- Seattle, WA: -1.3%
Meanwhile, the strongest monthly gains were observed in:
- Nassau County, NY: +2.1%
- San Diego, CA: +1.6%
- Fort Lauderdale, FL: +1.5%
When compared to May 2024, five metro areas posted double-digit price increases:
- New York, NY: +12.4%
- Nassau County, NY: +11.3%
- Detroit, MI: +11.2%
- Philadelphia, PA: +11.0%
- Chicago, IL: +10.2%
Conversely, three markets reported year-over-year price declines:
- Tampa, FL: -5.5%
- Austin, TX: -3.6%
- San Antonio, TX: -2.4%
Market Context and Outlook
According to Redfin Senior Economist Sheharyar Bokhari, sellers are beginning to feel pressure as high borrowing costs and economic uncertainty cause many buyers to step back from the market. Bokhari notes that this may lead to downward adjustments in seller price expectations over the coming months. However, he emphasized that price trends vary by location, with some regions—especially along the East Coast—continuing to experience strong demand and growth.
For additional data, including visual charts and methodology details, the full Redfin report is available here: Redfin Home Price Index – May 2025.
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country’s #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we’ve saved customers more than $1.8 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.
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