Policy & Property

Housing market

Home Prices Are Falling in These 5 Cities (Seattle -5.1%)

By Santosh Singh · Published · Last updated

Illustrated U.S. map with red pins, headline “Prices falling: Seattle -5.1%, 5 cities”

The U.S. median home-sale price fell 0.1% year over year to $389,601, Redfin's first annual drop in more than three years. But the national number hides big local swings. Here are the five metros falling fastest, what that means in dollars, and why a lower price does not yet mean a lower payment.

All figures are metro-wide medians, not the value of any one home.

The five cities

  • Seattle: -5.1% year over year (4 weeks to Oct 25). September median $793,179, -4.4%. Pending sales -31.6%, the steepest drop in the country.
  • San Jose, CA: -4.9%. September median $1,546,449, -3.4% (about $54,400 less than a year earlier).
  • Austin, TX: -4.6%. September median $416,788. Redfin says sellers outnumber buyers more than two to one, and 26.1% of listings had a price cut in the four weeks ending September 20.
  • Kansas City, MO: -4.3%, after +2.7% in September (median $359,175).
  • Nashville, TN: -3.3%, after +2.6% in September (median $465,331).
  • Also falling in September: Denver -2.6% ($568,694), Atlanta -1.5% ($389,106) and Charlotte -1.4%.

Why prices are slipping

Redfin counts 4.5 months of supply, up from 4 a year earlier. Active listings are up 2.2% while pending sales are down 15.9% to the lowest level in its records going back to 2021. Nationally the median home takes 50 days to sell, sells at 98.3% of list price, and 21.5% of listings have had a price drop.

The outlier: San Francisco

San Francisco's median rose 15% year over year (September median $1,695,107). Redfin counts it among only five seller's markets and links its strength to AI wealth. Only 9.6% of its listings had a price cut, versus 30.9% in Denver.

Lower price, higher payment

Freddie Mac's 30-year average was 7.24% for the week of October 29, 2026, versus 6.17% a year earlier. With 20% down, principal and interest on Seattle's median rose from about $4,052 a year ago to about $4,324 now (+$272). Denver is about +$249 and Austin about +$233. To get back to last year's payment at today's rate, buyers would need roughly 6.3% more off in Seattle, 8.0% in Denver and 10.2% in Austin.

A worked example

Austin's September median of $416,788 with 5% negotiated off saves $20,839. With 20% down at 7.24%, principal and interest falls from about $2,272 to about $2,159 a month, roughly $113 a month for the life of the loan. This is a hypothetical illustration, not a forecast.

How to negotiate

  • Target homes listed longer than 50 days or with a prior price cut.
  • Ask for seller credits toward a rate buydown, not only a lower price.
  • Compare monthly payments, not list prices.
  • Get at least three lender quotes.

Watch the video

Home Prices Falling in 5 Cities: Seattle Down $36,000 · Watch on YouTube

Sources

  1. Redfin, U.S. Home-Sale Prices Just Fell for the First Time in 3 Years (four weeks ending Oct 25, 2026; published Oct 29, 2026): redfin.com
  2. Redfin, U.S. Pending Home Sales Sink Near 12-Year Low (September 2026 metro data, published Oct 12, 2026): redfin.com
  3. Quartz, 10 housing markets where sellers are cutting home prices, per Redfin (four weeks ending Sept 20, 2026): qz.com
  4. Freddie Mac, Primary Mortgage Market Survey (week of Oct 29, 2026): freddiemac.com

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