Home Prices Are Dropping in Over a Third of U.S. Markets

The housing market is cooling—and quickly. According to our latest data, resale home prices have declined year-over-year in 53 out of the 150 metro areas we track, with price drops spreading beyond Texas and Florida into the Southeast, Southwest, and West Coast.

📉 New and Resale Prices Are Falling

Builders are now facing a rare challenge: too many completed homes and not enough buyers. As a result, new home prices—including incentives—are down 1.5% from last year. Resale prices have dipped in 35% of the country, while the remaining 65% still show gains, though appreciation is slowing.

This shift isn’t isolated—price weakness is now reaching parts of the Midwest and Northeast, regions previously protected by tight inventory. The trend suggests a broader transition in pricing power across the U.S.

🗺️ Download our latest map of resale price changes and see where values are falling.

🏗️ Supply Is Outpacing Demand

In many areas, home construction is growing faster than job creation, leading to an oversupply of new homes. Builders are cutting prices and offering generous concessions to attract buyers.

💼 Job Growth Slowing, Buyer Demand Shifting

The job market—a key factor in homebuying—is also showing signs of strain:

• Job growth is slowing in many metros

• Some markets are now losing jobs, especially in high-income sectors like Tech, Finance, and Professional Services

• Renting is on the rise as more consumers delay home purchases due to economic uncertainty

Examples:

• Still Growing: Charlotte (+2.2%), San Antonio (+2.0%), Salt Lake City (+2.0%)

• Declining: Bay Area and other high-cost coastal metros

🧠 What It Means for You

🏡 Homebuyers

Now is a window of opportunity: more inventory, motivated sellers, and builder incentives can mean better deals. If your employment is secure, it may be a great time to negotiate.

📉 Home Sellers

The market has shifted. Sellers must price realistically and be prepared for longer days on market.

• Entry-level sellers: Align pricing with what first-time buyers can afford.

• Move-up and luxury sellers: Understand your buyer may need to sell before they can buy.

🏘️ Investors

Quick flips and high yields are harder to find. However, this market phase presents an opportunity for long-term thinkers building rental portfolios or seeking diversification.