Slowing Home Sales and Rising Mortgage Rates

The US housing market has been experiencing a slowdown in home sales in recent months, with July seeing a 4.1% decline compared to June. This drop in sales is attributed to historically high home prices and increasing mortgage rates, which have made it more challenging for potential buyers to secure financing.

According to Redfin, the median U.S. home-sale price has reached $407,730, a 3.2% increase year over year. Meanwhile, the average 30-year fixed-rate mortgage has risen to around 6.54%, its highest monthly average since August 2025.

Redfin’s head of economics research, Chen Zhao, attributed the housing market’s mid-summer slump to record-high home prices, increasing mortgage rates, and growing financial insecurity. The data suggests that home sales are falling the quickest in Texas, with San Antonio, Dallas, and Fort Worth experiencing declines of 12.6%, 10%, and 9.9% respectively.

Florida’s Housing Market: A Tale of Two Cities

A report from Parcl Labs, using data from real estate platform MarketWatch, reveals that several metro areas in Florida are feeling the pressure of the slowing housing market. According to the data, two Florida cities top the list of US regions where home sellers are most likely to lose money on their listings.

Lakeland, Florida, and Panama City, Florida, are the two cities where more than 18% and 16.87% of listings respectively are priced below the previous purchase price. This is a stark contrast to the national average of 6.6%.

Other Florida cities, such as North Port and Punta Gorda, also feature in the top 10 list, with 14.33% and 13.92% of listings priced below the previous purchase price. In Texas, several metros also have a higher-than-average percent of listings that are below the prices that sellers paid, including Kingsville, Midland, and Lubbock.

The data suggests that some sellers are not confident that the market will improve, and experts are predicting a significant housing-market recovery is unlikely in the near term. Pantheon Macroeconomics’ senior US economist, Oliver Allen, stated that ‘near-term leading indicators provide no sign that sales are likely to pick up in the months ahead.’

A Closer Look at the Data

The report from Parcl Labs highlights the following cities that have the biggest share of listings that are below the previous purchase price:

• Lakeland, Florida: 18.40%
• Panama City, Florida: 16.87%
• Colorado Springs, Colorado: 16.17%
• Jacksonville, Florida: 15.13%
• Dallas, Texas: 14.74%
• Denver, Colorado: 14.74%
• North Port, Florida: 14.33%
• Punta Gorda, Florida: 13.92%
• San Francisco, California: 13.11%
• Urban Honolulu, Hawaii: 13%
• Portland, Oregon: 12.62%

The report also highlights the following cities in Texas that have a higher-than-average percent of listings that are below the prices that sellers paid:

• Kingsville: 11.6%
• Midland: 10.3%
• Lubbock: 9.8%
• Plainview: 9.4%
• San Angelo: 9.4%
• Austin: 9.3%
• Wichita Falls: 9.2%
• Amarillo: 9.1%
• Waco: 9.0%

Phoenix, Arizona, also features in the report, with 12% of listings priced below the previous purchase price.