The US city with the fastest-falling home prices

By LAUREN ACTON-TAYLOR, US NEWS REPORTER

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While house prices across the United States are dropping at alarming rates, a Californian city is seeing them plummet the fastest. In July, 14 states saw major drops in home values, with cities in Florida, California and Texas being hit the hardest.

While house prices across the United States are dropping at alarming rates, a Californian city is seeing them plummet the fastest. In July, 14 states saw major drops in home values, with cities in Florida, California and Texas being hit the hardest.

But Oakland, California, has seen some of the fastest declines - 6.8 percent year on year in July according to Redfin with some areas of the city seeing up to 22 percent price drops. The part of Oakland that saw the sharpest decline had average home values of $615,132 in quarter one, a 22.63 percent decrease since 2020, according to data from Zillow.

But Oakland, California, has seen some of the fastest declines - 6.8 percent year on year in July according to Redfin with some areas of the city seeing up to 22 percent price drops. The part of Oakland that saw the sharpest decline had average home values of $615,132 in quarter one, a 22.63 percent decrease since 2020, according to data from Zillow.

In other parts of California, Santa Cruz prices fell 2.3 percent, Napa dropped by 2.2 percent, the East Bay Area saw a 2 percent decline, and Stockton home prices fell by 1.9 percent. Oakland's falling home prices, according to some local real estate agents, can be partly attributed to the high-crime levels in the area. Oakland-based realtor David Gunderman told The Mercury News that the city 'has definitely had a branding problem around crime and safety and some of the services like schools have been perceived to not be as robust as people would like'.

In other parts of California, Santa Cruz prices fell 2.3 percent, Napa dropped by 2.2 percent, the East Bay Area saw a 2 percent decline, and Stockton home prices fell by 1.9 percent. Oakland's falling home prices, according to some local real estate agents, can be partly attributed to the high-crime levels in the area. Oakland-based realtor David Gunderman told The Mercury News that the city 'has definitely had a branding problem around crime and safety and some of the services like schools have been perceived to not be as robust as people would like'.

However, realtor Deidre Joyner (pictured) with Red Oak Realty told Daily Mail that the numbers don't paint the full picture. 'So the Oakland market data is down,' she told the Daily Mail. 'But it's partly because Oakland's large. It's highly diverse with more than 100 distinct sub-neighborhoods. Each of these areas has its own pricing, inventory and demand pattern... The numbers are pretty much almost the same. If you go by price per square foot, it's up a few dollars by price per square foot.'

However, realtor Deidre Joyner (pictured) with Red Oak Realty told Daily Mail that the numbers don't paint the full picture. 'So the Oakland market data is down,' she told the Daily Mail. 'But it's partly because Oakland's large. It's highly diverse with more than 100 distinct sub-neighborhoods. Each of these areas has its own pricing, inventory and demand pattern... The numbers are pretty much almost the same. If you go by price per square foot, it's up a few dollars by price per square foot.'

Joyner said buyers are more focused on the value of the home for the price they are willing to pay, not about the area. 'When you look at two houses, same street, came on basically at the same time, one sold well over asking price, all cash, and one got an offer a couple hundred thousand dollars less,' she said. 'It was about the flow of the house and how the house functions. Buyers right now are very discerning.' She noted concerns in the market such as high interest rates, economic uncertainty, tariff concerns, rising repair and construction costs, and job security that have influenced buyers and sellers to be more deliberate with their decisions.

Joyner said buyers are more focused on the value of the home for the price they are willing to pay, not about the area. 'When you look at two houses, same street, came on basically at the same time, one sold well over asking price, all cash, and one got an offer a couple hundred thousand dollars less,' she said. 'It was about the flow of the house and how the house functions. Buyers right now are very discerning.' She noted concerns in the market such as high interest rates, economic uncertainty, tariff concerns, rising repair and construction costs, and job security that have influenced buyers and sellers to be more deliberate with their decisions.

According to Joyner, buyers are much more analytical about what a house can offer in the long run, but sellers are also far more adamant about the prices they are looking to sell for. 'There are two cases where I had clients who said, "If I don't get this price, I am not selling. I'm not desperate. I don't have to sell,"' Joyner said. 'A lot of buyers had this exuberance of, "I have to get into the market before I can no longer afford it," and because of that buyers were taking on properties that had more challenges.'

According to Joyner, buyers are much more analytical about what a house can offer in the long run, but sellers are also far more adamant about the prices they are looking to sell for. 'There are two cases where I had clients who said, "If I don't get this price, I am not selling. I'm not desperate. I don't have to sell,"' Joyner said. 'A lot of buyers had this exuberance of, "I have to get into the market before I can no longer afford it," and because of that buyers were taking on properties that had more challenges.'

Joyner said that many modern buyers are far more interested in homes without 'incurable property characteristics', such as traffic or freeway noise or awkward floor plans. 'Buyers are being very selective of what they want to purchase, and they're not willing to purchase something simply because it's at a price they can afford,' she continued. 'Now it's not a matter of, "Will I buy that, will I buy the house for less?" It's, "Will I buy the house at all?" And buyers are really just being more intentional with their purchases, which is driven, I think, by affordability issues.' 'There are houses in Oakland that are doing quite well, but those are the ones that are a beautiful house, it was well loved, maintained by the same owners for 18 years. But it's very, very property specific. 'We're in a market with a discerning buyer who will not just buy to buy... The reality is that buyers must see clear value, and value does not always mean a discount.'

Joyner said that many modern buyers are far more interested in homes without 'incurable property characteristics', such as traffic or freeway noise or awkward floor plans. 'Buyers are being very selective of what they want to purchase, and they're not willing to purchase something simply because it's at a price they can afford,' she continued. 'Now it's not a matter of, "Will I buy that, will I buy the house for less?" It's, "Will I buy the house at all?" And buyers are really just being more intentional with their purchases, which is driven, I think, by affordability issues.' 'There are houses in Oakland that are doing quite well, but those are the ones that are a beautiful house, it was well loved, maintained by the same owners for 18 years. But it's very, very property specific. 'We're in a market with a discerning buyer who will not just buy to buy... The reality is that buyers must see clear value, and value does not always mean a discount.'

Oakland was recently named by US News and World Report rankings as the second most dangerous in the country. It was also recently targeted by President Trump for its rampant crime, and despite seeing falling crime rates the president said the city was 'so far gone'.

Oakland was recently named by US News and World Report rankings as the second most dangerous in the country. It was also recently targeted by President Trump for its rampant crime, and despite seeing falling crime rates the president said the city was 'so far gone'.

According to the City of Oakland, it has a crime rate of nearly 136 per one thousand residents. Yet, the Oakland Police Department announced a 28 percent drop in crime for the first six months of 2025. 'Our work is far from done,' Oakland Mayor Barbara Lee said in a press conference. 'We're going to keep building on this progress with the same comprehensive approach that got us here.'

According to the City of Oakland, it has a crime rate of nearly 136 per one thousand residents. Yet, the Oakland Police Department announced a 28 percent drop in crime for the first six months of 2025. 'Our work is far from done,' Oakland Mayor Barbara Lee said in a press conference. 'We're going to keep building on this progress with the same comprehensive approach that got us here.'

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