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15 Housing Markets Where Prices Are Falling Ahead of the Spring Selling Season

March 10, 2025

3 min Read

Written by Vance Cariaga

Edited by Angela Corry

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For house hunters seeking relief from record-high home prices over the past few years, 2025 has brought good and not-so-good news. The not-so-good news is that prices continue to tick higher. As of Feb. 27, the typical U.S. home value was $355,328, according to Zillow — up 2.7% from the previous year.

The good news is that recent price increases are not as steep as in previous years, and home buyers have much more inventory to choose from. In January, the number of U.S. homes actively for sale rose 24.6% from a year earlier, according to a Realtor.com analysis. That marked the 15th straight month of growth in homes for sale.

Here are some other highlights of the Realtor.com report:

The total number of unsold homes (including those under contract) rose by 17.1% in January 2025 vs. the prior year.
Newly listed homes climbed by 10.8% year-over-year and 37.5% compared with the previous month — the largest December to January increase since January 2020.
The median price of homes for sale in January fell 2.2% from the prior year, though the median list price per square foot rose 1.2%.

Among the places that have seen significant drops in home prices are Sunbelt markets were red hot only a few years ago.

“Austin, Denver, Phoenix, and Nashville were the darling markets of 2021 and 2022 and places where prices went wild,” Realtor.com senior economist Joel Berner said. “Now, with more homes on the market, prices are returning to where they belong.”

Key Florida markets such as Miami, Tampa and Orlando have also seen prices drop of late as the inventory of homes returns to pre-pandemic norms, Berner added.

If you’re shopping for a new home, here are 15 cities where prices are falling ahead of the spring selling season, according to Realtor.com.