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U.S. Home Prices Drop: Austin Sees 7.3% Decline

1/10/2026

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Summary

Story summary

In December 2025, median U.S. home prices fell 0.6% year over year.
The South and West saw declines of 1.1% and 1.8%, respectively.
Austin, Texas, experienced the largest drop at 7.3%.
Buyers are adapting to higher interest rates.
Other metros, including San Diego and Minneapolis, also reported declines, with economic uncertainty and high costs shaping first-time buyers.

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Story summary

In December 2025, median U.S. home prices fell 0.6% year over year.
The South and West saw declines of 1.1% and 1.8%, respectively.
Austin, Texas, experienced the largest drop at 7.3%.
Buyers are adapting to higher interest rates.
Other metros, including San Diego and Minneapolis, also reported declines, with economic uncertainty and high costs shaping first-time buyers.