Hot Markets Gone Cold
During the last few years, the housing bubble popped into some of America's hottest markets. What goes up must come down, and home costs in such regions prove this timeless rule. Buyers who once faced bidding wars rushed to hold the cards.
San Francisco, CA
San Francisco, the country's tech hub, has witnessed the most dramatic housing market correction. Its median list prices plummeted 10.87% year-over-year to $889,499. This steep decline marked a massive shift for a city once known for its unstoppable real estate appreciation.
Frank Schulenburg, Wikimedia Commons
San Francisco, CA (Cont.)
Homelessness, an opioid epidemic, and a failing business community with companies fleeing the region had all contributed to San Francisco's real estate woes. However, Daniel Lurie promised to address these issues while vowing to build “enough housing so our neighbors can afford to live here”.
King of Hearts, Wikimedia Commons
Miami, FL
About 10% lower than last year—that's the reality for Miami's housing market. Here, the median list prices have dropped to around $522,499. The metro area, which gained tremendous attention during the post-pandemic market surge, is now adjusting to new realities.
Phillip Pessar, Wikimedia Commons
Miami, FL (Cont.)
Miami's cooling market can be attributed to inventory returning to pre-pandemic levels. Another key factor bringing prices down is the considerable increase in new construction across the region, especially smaller and more cost-effective homes that are helping to satisfy demand at lower price points.
Austin, TX
This city was once the darling of pandemic-era real estate, a boomtown where prices soared to unprecedented heights. Today, the Texas capital tells a different story, with median list prices dropping 0.49% year-over-year to $513,000, according to Realtor.com's December Housing Market Report.
Ryan Friesen, Wikimedia Commons
Austin, TX (Cont.)
What's behind this change? The town’s inventory has returned to healthier levels, giving buyers more options and negotiating power. As Realtor.com senior economist Joel Berner explains, “Austin, Denver, Phoenix, and Nashville were the darling markets of 2021 and 2022 and places where prices went wild”.
Austin, TX (Cont.)
“Now, with more homes on the market, prices are returning to where they belong”. As of January 2025, the median sales price for the Austin-Round Rock-San Marcos metropolitan area was $409,765. This reflected a decrease of 4.7% compared to January 2024.
Renelibrary, Wikimedia Commons
Kansas City, MO
Unlike coastal markets where affordability has been stretched to breaking points, Kansas City's decline may represent a healthy recalibration. The city maintains its reputation for relative affordability compared to national averages, even as its market adjusts downward from post-pandemic highs.
Stuart Seeger, Wikimedia Commons
Kansas City, MO (Cont.)
The median list price in Kansas City has fallen to $369,995, a substantial 7.48% year-over-year decline. Note that despite the overall increase in home prices, there are variations based on property type. Homes get an average of two offers and sell in about 62 days.
Tampa, FL
With its coastal views and lively culture, Tampa has long been a magnet for relocating Americans. However, the city's real estate boom has cooled quite a lot, with median list prices decreasing 5.95% year-over-year to $395,000, according to recent housing market data.
Clement Bardot, Wikimedia Commons
Tampa, FL (Cont.)
Insurance costs are playing a major role in Tampa's housing market correction. Many insurance companies have stopped covering homes along Florida's coast after recent hurricanes or increased their rates. In January 2025, the location dropped on Zillow's hottest housing market list, indicating a slowdown in demand.
Jacksonville, FL
Jacksonville, which is in the northeastern part of Florida, is another Sunshine State area that is seeing price corrections. With a typical list price of $384,500, down 5.69% from the previous year, it is becoming more and more appealing to buyers on a tight budget.
Jacksonville, FL (Cont.)
Like other Florida cities, Jacksonville's inventory has steadily returned to pre-pandemic levels. According to ResiClub's latest analysis, this trend continues into early 2025, with prices down 0.7%, according to their most recent data. Its relatively affordable housing combined with new construction has helped recalibrate prices.
Denver, CO
Denver's housing market is experiencing what economists call a return to fundamentals. Realtor.com senior economist Joel Berner says that Denver was among markets "where prices went wild" during 2021 and 2022. Now, with more inventory available, buyers have gained leverage in negotiations.
Denver, CO (Cont.)
At $577,350, Denver's median list price has dropped 5.35% year over year. The region’s cooling tendency is a big change from its pandemic-era price surge, which had made it one of the Mountain West's hottest real estate markets.
Jeffrey Beall, Wikimedia Commons
Phoenix, AZ
With CoreLogic ranking Phoenix as one of the cities most at risk for further price drops through 2025, the desert city's real estate market is significantly cooling. In terms of recent data, the median list rate has gone down by 5.07% year over year to $499,995.
Phoenix, AZ (Cont.)
This city is an example of the boom-and-bust pattern affecting many Sun Belt markets. After experiencing extraordinary growth during the lockdown, the market has started correcting as migration patterns normalize. The abundance of new construction has also played a big role in the city's price adjustment.
Tony the Marine (talk), Wikimedia Commons
Cincinnati, OH
Compared to other towns concentrated in the Sun Belt, Cincinnati stands out as a Midwestern market. Its declining prices come despite the National Association of Realtors reporting that the Midwest as a whole saw a 4.7% increase in home prices in the fourth quarter of 2023.
Cincinnati, OH (Cont.)
Queen City's median list price has been reported at 4.76% year over year to $319,050. Notably, houses in Cincinnati usually receive two offers and sell in roughly 63 days, making the market competitive. Strong demand is indicated by the area's Redfin Compete Score of 90.
Warren LeMay from Cincinnati, OH, United States, Wikimedia Commons
Orlando, FL
The theme park capital of the world is experiencing more than just thrilling rides. Its housing market is on a downward trajectory, with median list prices of 4.34% year-over-year to $419,950. Housing economists point to Orlando's inventory returning to pre-pandemic levels as a primary factor.
Orlando, FL (Cont.)
In February 2025, there were 297 homes sold in Orlando, down from 353 in the same month last year. Certain predictions suggest that the market may stabilize further in 2025, with gradual price appreciation expected by 2026 as demographic trends continue to support demand.
Artystyk386, Wikimedia Commons
San Antonio, TX
In San Antonio, ResiClub shows a 2.4% year-over-year drop in home values as of late 2024. Previously, the National Association of Realtors recorded an even steeper 4.3% decline in median home prices during Q4 2023, getting values to $315,700.
San Antonio, TX (Cont.)
The location’s housing market softening follows a pattern seen across multiple Texas urban centers, where inventory levels have climbed above pre-pandemic levels. This increased supply, combined with higher mortgage rates, has shifted negotiating power toward buyers in a market that previously favored sellers.
Larry D. Moore, Wikimedia Commons
New Orleans, LA
New Orleans contends with additional pressures from insurance costs and climate concerns. Gulf Coast properties increasingly face scrutiny from insurers wary of hurricane risks. This adds another obstacle for potential buyers beyond just purchase price.
Michael Maples, U.S. Army Corps of Engineers, Wikimedia Commons
New Orleans, LA (Cont.)
Hurricane recovery efforts and changing climate realities continue to shape New Orleans' housing scenario, where prices have fallen 4.6%, according to the National Association of Realtors' data. As of February 2025, the median home price in New Orleans was approximately $328,998.
Provo, UT
Provo faces the highest risk of ongoing home price decreases throughout 2025, according to CoreLogic's most recent Market Risk Indicator report. Based on present economic conditions, this risk is 70% or higher. In Q4 of 2023, median home prices fell 4.8% year over year to $500,900.
Provo, UT (Cont.)
Houses in Provo are staying on the market longer, with an increase of 16.7% in days on the market, rising from 66 days in January 2024 to 77 days in January 2025. This trend suggests a cooling market where folks have more negotiating power.
Creator: Javin Weaver, Wikimedia Commons
Provo, UT (Cont.)
Reduced buyer demand and lengthier selling periods are noticed by Provo's home price forecast score of 36 out of 100 as of early 2025. This score is far below the stability range of 45 to 55. Sellers may need to adopt strategic pricing and patience.
Cape Coral, FL
By early 2025, Cape Coral's median house sale price had fallen to about $365,000 in January, an 11.2% reduction from the year before. In comparison to January 2024, this represents a drop of almost $45,950. Around $363,443 is the average home value.
Sanibel sun at English Wikipedia, Wikimedia Commons
Cape Coral, FL (Cont.)
Insurance challenges have hit the area particularly hard. As one housing market observer noted, “Many insurance companies aren't covering homes along the coast of Florida, and I can see why after the last two hurricanes”. These skyrocketing insurance charges combine with higher mortgage rates.
Villapelicanbay, Wikimedia Commons
Tucson, AZ
Arizona's second-largest town faces severe downward pricing pressure, with CoreLogic identifying Tucson as having the second-highest risk for continued home price declines in 2025. Realtor.com depicts prices already down 1.9% year-over-year, with the median sale price hovering about $391,255.
John Diebolt, Wikimedia Commons
Tucson, AZ (Cont.)
Tucson's correction has been a little more gradual than Phoenix's more spectacular downturn. Upcoming projects like the I-10 upgrades are expected to enhance accessibility and potentially boost property values by 2026. This $171 million project aims to widen parts of the I-10.
Chico, CA
While Sun Belt cities are correcting from pandemic-era booms, Chico's challenges stem partly from recovery after the devastating 2018 Camp Fire. This destroyed around 19,000 structures in nearby Paradise and caused a sudden housing demand surge.
Chico, CA (Cont.)
As rebuilding has progressed and emergency housing needs have stabilized, prices have begun to normalize. In March 2025, the average home value in Chico is said to be approximately $457,562, a modest increase of 0.7% from the past year.
Frank Schulenburg, Wikimedia Commons
Myrtle Beach, SC
The well-known coastal vacation destination saw median home prices drop 2.9% year-over-year, according to NAR data, signaling a change in this tourist-driven real estate market. The Myrtle Beach market is considered less competitive, with houses averaging about 119 days on the market.
Myrtle Beach, SC (Cont.)
During the 2020 Corona virus scare, remote work fueled high demand for second homes and investment properties in tourist locations. As companies have instituted return-to-office policies and higher interest rates have made investment properties less profitable, demand has cooled.
Elisa.rolle, Wikimedia Commons
Beaumont, TX
Because Beaumont is a buyer's market, homes here often have lower prices and are listed for a longer period of time. Compared to a year ago, certain abodes have sold for an average of 2.5 percent less.
Reagan Rothenberger, Wikimedia Commons
Beaumont, TX (Cont.)
Home sales took an average of 129 days in January 2025, which is longer than last year's average of 89 days. The number of houses available for sale has also increased, with about 645 active listings in January 2025, highlighting a 21.7% increase compared to December 2024.
Larry D. Moore, Wikimedia Commons
Sarasota, FL
Median real estate costs have fallen 3.9% year over year as luxury buyers flee this cultural center on the Gulf Coast. One of the most sought-after—and pricey—coastal markets in Florida is Sarasota, which is well-known for its beaches, arts scene, and retiree-friendly way of life.
Sarasota, FL (Cont.)
The forces behind Sarasota's price correction extend beyond just rising inventory. Insurance costs have become a major factor, with some homeowners seeing annual premiums rise from $3,000 to $10,000. Experts believe that some property types may see stronger sales activity due to increased inventory.
Elmira, NY
A year ago, it took 38 days on average for properties to sell; now, it takes approximately 50 days. Looks like there are a bunch more homes up for sale now, as around 210 listings are reported to be active.
Elmira, NY (Cont.)
This small New York metro area recorded a 4.2% year-over-year decline in median home prices to $142,700. As per reports, approximately 61.5% of residences sold in January 2025 were below the asking price, displaying reduced buyer competition.
Crestview, FL
Crestview's median home rate dropped 2.3% year over year to $394,600, depicting that the Panhandle region of Florida is also going through a housing market correction. Compared to Florida's more tourist-heavy coastal places, this military-influenced sector in Okaloosa County has distinct dynamics.
Crestview, FL (Cont.)
Military personnel relocations play an important role in Crestview's housing market due to its proximity to Eglin Air Force Base. This is one of the largest military installations in the world. The area’s housing demand is heavily influenced by Department of Defense assignment cycles and military spending priorities.
