Home prices are falling in 14 US cities: Redfin

After years of soaring prices and fierce bidding wars, some of the nation’s most notoriously expensive housing markets are cooling — and fast.

Home prices are falling in 14 of the 50 largest US metro areas, according to a new Redfin report, creating a rare moment of leverage for buyers in places that have long favored sellers.

Oakland, California, posted a 6.8% annual price drop, the steepest among tracked metros, while West Palm Beach, Jacksonville, Austin and Houston saw declines ranging from 2.8% to 4.9%.

These are markets where many would-be homeowners were previously shut out by sky-high prices and rapid sales.

Now, homes are lingering on the market longer and sellers are cutting prices to meet buyer expectations.

In West Palm Beach, for example, homes that went under contract in July took a median of 93 days to sell — up 18 days from the same period last year. Pending sales in the area are down 1.4% year-over-year, while inventory has climbed 7.7%.

Nationally, home prices still rose 2% from a year earlier, but Redfin economists expect that trend to reverse, forecasting a 1% annual price decline by year’s end.

The median asking price fell to a five-month low in late July, and the median monthly mortgage payment dipped to $2,671 — the lowest level since January.

That shift is opening a narrow window for opportunistic buyers.

Even as mortgage rates hover near 6.75%, fewer competitors and more price cuts are giving shoppers a chance to negotiate.

Touring activity is up 35% since January, according to ShowingTime, a home touring technology company.

But not everyone is jumping in: mortgage-purchase applications fell 6% last week, and Redfin’s Homebuyer Demand Index is down 5% month-over-month.

“Sellers need to start coming to terms with two things,” said James Gulden, a Redfin Premier agent in Boston. “One, homes are more often going to sit on the market for longer than a week or two before they sell, and two, buyers are gaining the upper hand.”