Home Prices Are Falling the Most in These 5 Popular Counties

The housing market experienced a "cruel summer," but now sales of newly built homes have surged to shrug off that slump.

And adding to that momentum are falling house prices, particularly in five popular counties.

Several of the largest counties are seeing the biggest annual drops in median home prices, according to a new Home Affordability Report by ATTOM, a leading curator of land, property data, and real estate analytics.

Topping ATTOM's list are New York County, NY (down 3%); Sacramento County, CA (down 3%); Contra Costa County, CA (down 3%); Hillsborough County, FL (down 2%); and Harris County, TX (down 1%).

Realtor.com® data shows the variations in median list prices during the summer months, underscoring what ATTOM's analysis revealed when it comes to home prices dropping.

New York County, NY

• August 2025 median list price: $1,430,000
• July 2025 median list price: $1,450,000
• June 2025 median list price: $1,495,000

Sacramento County, CA

• August 2025 median list price: $545,000
• July 2025 median list price: $549,000
• June 2025 median list price: $549,947

Contra Costa, CA

• August 2025 median list price: $791,245
• July 2025 median list price: $796,625
• June 2025 median list price: $799,900

Hillsborough County, FL

• August 2025 median list price: $445,000
• July 2025 median list price: $449,000
• June 2025 median list price: $449,900

Harris County, TX

• August 2025 median list price: $339,000
• July 2025 median list price: $345,450
• June 2025 median list price: $349,900

"Falling home prices are a result of more home listings or a different mix of home types available," explains Hannah Jones, senior economic research analyst at Realtor.com. "In Southern markets, like Harris County and Hillsborough County, more inventory is softening the market and letting home prices fall." 

"In New York County, inventory is stable year over year, suggesting that falling demand could be driving home prices lower."

New York County is made up of the borough of Manhattan. Jacob Wood, real estate broker with Coldwell Banker Warburg, says that "across the board, median closing prices in Manhattan haven’t moved much in 10 years."

Wood tells Realtor.com that certain market sectors have experienced real value contraction. For example, studios or ground floor units have "categorically decreased in value" compared with luxury co-ops.

"Many of the luxury co-ops known throughout the '80s and '90s as ‘good buildings’ have application processes and financial requirements that even most luxury buyers see as draconian and unreasonable," says Wood.

But just because prices may not be trending up doesn't mean buyers can score a deal—especially in the Manhattan market.

"The notion that they [buyers] can get this amazing deal or 'every buyer can catch a unicorn' is false in most cases," says Jules Garcia, real estate agent with Coldwell Banker Warburg. "Buyers should appreciate that they are aiming to purchase in one of the most competitive and therefore expensive markets in the world."

"Post-COVID supply-line issues and tariff-related cost volatility have negatively affected the value of homes requiring significant renovations," Wood adds.

Affordability hurdles

The national median list price in August was $429,990—that amount remained unchanged from the same time last year and sellers are feeling the pressure. The Realtor.com August 2025 Monthly Housing Market Trends Report found that 20.3% of listings had price cuts.

ATTOM found that "affordability woes grew even worse in much of the country." Of the 580 counties in the analysis, 259 counties had a worse affordability index in the third quarter.

Mike Brun, CEO at Estate Shutter, which handles real estate photography covering Hillsborough County, says that he has witnessed affordability hit a ceiling.

"Rising mortgage rates combined with soaring insurance and HOA costs forced sellers to adjust," says Brun.

The report found the typical monthly cost of mortgage payments, homeowners insurance, mortgage insurance, and property taxes nationwide was $2,123 in the third quarter of 2025. That was essentially the same as the previous quarter but up 6% from the same time last year.

"The drop in mortgage rates will help some buyers keep pace with the rising cost of homes,” says Rob Barber, CEO of ATTOM. "But the more favorable loan rates could also enable prices to keep rising and further extend this two-and-a-half-year streak we’re in of homes being less affordable to the typical resident of an area than they historically have been."

Affordability is keeping both buyers and sellers stretched. Realtor.com housing data found more homes for sale at the end of summer—which is good for buyers. August marked the 22nd straight month of inventory growth with active listings topping 1 million for the fourth month in a row.

The most pronounced seller activity that Realtor.com economists identified is delistings, which were up 57% year over year in July.

A delisting is when a home listing expires or the seller pulls the home off the market without a sale. In July delistings outpaced inventory gains. The Realtor.com Cruel Summer report highlighted delistings "as a way sellers attempt to reassert control as the market shifts in a more buyer-friendly direction."

Economists say delisting a property is a sign that many frustrated homeowners are pulling back instead of meeting buyers where they are.

For homebuyers, an ample supply of inventory means there is still a possibility to negotiate a lower price—especially if a home is overpriced or mispriced.

"Right now, [negotiating a lower price] affords serious buyers a bit of an intersection—where directionally we know rates need to and will likely trend downward," says Garcia.

"Since we are not yet in the thick of a falling rate environment, there are still buyers sitting on the sidelines. This is where buyers, who’ve identified a property that can work for them, should pounce! We are not yet at that breakneck seller’s market we might expect when rates come down even further."