T
he nation's most expensive housing markets are experiencing a rapid cooling, with home prices plummeting in 14 of the 50 largest US metro areas. According to a new Redfin report, Oakland, California saw the steepest price drop at 6.8%, while West Palm Beach, Jacksonville, Austin, and Houston experienced declines ranging from 2.8% to 4.9%.

    In these markets, buyers who were previously priced out by sky-high prices are now gaining leverage. Homes are lingering on the market longer, with sellers cutting prices to meet buyer expectations. In West Palm Beach, for example, homes took a median of 93 days to sell in July, up from 75 days last year.

    Nationally, home prices still rose 2% from a year earlier, but Redfin economists predict that trend will reverse, forecasting a 1% annual price decline by year's end. The median asking price has fallen to a five-month low, and the median monthly mortgage payment dipped to $2,671 – its lowest level since January.

    This shift is creating a narrow window for opportunistic buyers, who can now negotiate prices despite high mortgage rates hovering near 6.75%. Touring activity is up 35% since January, according to ShowingTime, 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. "Homes are more often going to sit on the market for longer than a week or two before they sell, and buyers are gaining the upper hand."