Jacksonville has just become one of only 11 major U.S. cities where home prices dropped compared to the same time last year — falling 2.2%, the largest decrease in Florida and one of the biggest across the country.
New data from Redfin shows this decline comes as high interest rates and economic uncertainty continue to cool the national housing market. It’s the first time since September 2023 that this many large metro areas have experienced price drops.
In Jacksonville, the median home price fell during the four weeks ending April 20, even though the number of homes for sale stayed fairly consistent. Across the country, new listings rose by almost 10%, but buyers are becoming more cautious and particular.
“There are always people who need to buy or sell homes,” said Chen Zhao, head of economic research at Redfin. “But in today’s uncertain economy, those buyers and sellers need to be especially thoughtful about their decisions.”
Nationally, home prices still went up 2.1% over the past year, but that’s the slowest growth rate in nearly two years. Meanwhile, pending sales dipped slightly, and the median monthly mortgage payment rose to $2,848 — just $8 below the all-time high. Mortgage rates also jumped to 6.83%, a sharp increase from the previous week.
Zhao advised sellers to be flexible with their pricing: “You might have to list your home for less than you’d like to sell quickly and avoid having to make concessions. Buyers, on the other hand, should negotiate hard and shop around for the best mortgage deals.”
After a surge in home values during the pandemic, Jacksonville’s price drop may be part of a broader market correction — driven by national trends and the city’s ongoing challenges with affordability.
Information from: https://www.bizjournals.com/jacksonville/news/2025/04/25/jacksonville-sees-sharpest-home-price-drop-q2-25.html
Buyer’s Market
Tariffs and ongoing economic uncertainty are putting pressure on the U.S. housing market, slowing down home sales during what’s typically the busiest season of the year.
According to Zillow, more than 375,000 homes were listed in March — up nearly 9% from last year — but the number of newly pending sales remained flat. That’s despite average mortgage rates being slightly lower this March compared to the same time in 2024.
Even though the market is starting to lean more in favor of buyers, with price cuts reaching their highest level in over seven years, the momentum hasn’t picked up. Inventory climbed to 1.15 million homes in March — a 19% increase year over year and the most homes for sale in a March since 2020 — yet it’s still about 24% below typical pre-pandemic levels.
Redfin data shows that, as of mid-April, home prices had fallen year-over-year in 10 of the 50 largest metro areas — particularly in Texas and Florida, where construction surged during the pandemic but demand has since cooled. In many of these markets, supply is now outpacing demand.
Homes are also staying on the market longer. The average home that sold in March had been listed for 47 days, the slowest pace since the start of the pandemic. This sluggishness signals a spring market that’s off to a slow start, even though it’s usually one of the busiest times for buying and selling.
“We’re not seeing the typical spring surge in sales,” said Sean Fergus of Zonda, a real estate research firm. “The market feels like it’s in limbo, with buyers and sellers hesitating because of all the volatility.”
New-home sales are also slowing. Zonda reported that about 650,000 new homes sold in March on a seasonally adjusted basis — down 3.2% from February and more than 11% from a year ago. Many builders are cutting prices: 32% did so in March, compared to 21% in February.
This slowdown is partly due to rising costs for materials and labor, driven by tariffs and immigration policy. Brian Bernard of Morningstar noted that markets like Florida and Texas are seeing home prices soften and inventories of new homes grow. If spring demand doesn’t rebound soon, builders may pull back even more.
On the positive side, the influx of resale homes is helping to bring inventory levels closer to balance. According to Fergus, this growing supply is a long-term benefit for buyers — especially if mortgage rates eventually come down. Still, rates have remained mostly steady, hovering in the high 6% to low 7% range, with the latest average at 6.83%, per Freddie Mac.
The market shift toward buyers is happening gradually — not because buyer demand suddenly vanished, but because it hasn’t kept pace with growing supply. Redfin’s Chen Zhao explained that demand has been cooling since mid-2022, when interest rates first started rising. And even though more homes are now for sale, demand hasn’t bounced back the way you’d expect.
Zhao added that many potential buyers are holding off due to uncertainty — economic instability, higher homeownership costs, and even recent climate disasters like hurricanes and wildfires. All of these are creating additional hurdles for buyers.
Zillow reported that 23% of listings saw price reductions in March — the most for any March since at least 2018. And homes are now staying on the market four days longer than this time last year, according to Realtor.com.
While lower prices may seem like a win for buyers, many are still choosing to wait. Zhao noted that even if a recession brings mortgage rates down, it might not be enough to boost demand — especially if economic conditions worsen. For buyers to feel confident again, they need to see more stability in the broader economy.
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