Home Prices Decline in Many U.S. Markets as Inventories Rise

Rising inventories are starting to cool off home price growth across many U.S. metro areas, according to the Harvard Joint Center for Housing Studies. 

Home prices continued a modest upward trend earlier this year, but increasing for-sale inventory and high borrowing costs have recently pushed more markets into decline.

Nationally, home prices rose 2.2% year-over-year in May, down from 5.9% in the previous year. 

In the first quarter of 2025, 12 of the 100 largest U.S. metro areas saw annual home price drops. By June, the number had increased to 29—the highest since mid-2023, when interest rates rose.

Read the full report here.