Florida, Texas, and California have emerged as pivotal regions in the current downturn of the U.S. housing market, collectively hosting 12 out of the 14 key metropolitan areas experiencing declining home prices.

Dallas, Texas, leads the pack with the most significant decline, as median home prices have decreased by 7.6% compared to the previous year.

In Florida, a state previously known for its booming real estate market, cities like Miami, Jacksonville, Orlando, and Fort Lauderdale are now witnessing a downturn in property values.

Similarly, California is experiencing a slump, with four metros seeing price drops. Oakland faces the second-largest reduction at 5.6%, alongside declines in San Jose, Sacramento, and Los Angeles.

This downward trend is spreading beyond these states. Atlanta, Georgia, and Denver, Colorado—previously more resilient Sun Belt markets—are now also experiencing price declines.

Behind the price falls is a sudden collapse in demand. Pending home sales across the US dropped 5.9 percent in December, falling to their lowest level on record outside April 2022 when the pandemic halted the housing market, according to Redfin data going back to 2012.

‘Buyers are extremely selective and still think prices are too high,’ said Alison Williams, a Redfin Premier real estate agent in Sacramento, CA. ‘There aren’t a ton of homes on the market, but there are enough for house hunters to feel like they can take their time.’

She said many deals are stalling because buyers need to sell their current home first, while sellers are refusing to accept contingent offers — creating a standstill that is dragging prices lower in some of America’s biggest housing markets. 

The Dallas-Fort Worth area is experiencing a major downturn with too many homes for sale

Median sale prices fell the most in Dallas (-7.6 percent). Across the US, pending home sales across the US have dropped to the lowest level on record aside from the start of the pandemic

Homebuyers have been skittish due to stubbornly high housing costs, layoffs, and mounting economic and political uncertainty. 

Sellers have been hesitant to slash prices, pulling homes off the market altogether. 

Despite the price falls in the Sun Belt states, across the US values remain high. The median home sale price rose 0.5 percent year over year in December to $428,742—the highest December level on record.

While that’s the slowest growth since June 2023, it’s still growth, and many homebuyers are priced out of the market. 

Home prices rose fastest over the past year in Detroit, Newark, New Jersey, and St. Louis, where median sale prices were up 8.9 percent, 8 percent and 7.8 percent respectively.

Mortgage rates are hovering around 6 percent, roughly double pandemic-era lows.Rates briefly dipped below that level last week after a $200 billion mortgage bond purchase ordered by President Trump, sparking a short-term jump in mortgage demand that could lift January sales. 

Homes are also taking longer to sell. The typical property that went under contract in December spent 60 days on the market, the slowest December pace in a decade and six days longer than a year earlier. 

More buyers are walking away late in the process. Around 40,000 home purchases were canceled in December, equal to 16.3 percent of pending sales — the highest December cancellation rate since records began in 2017. 

‘Buyers are extremely selective and still think prices are too high,’ said Alison Williams, a Redfin Premier real estate agent in Sacramento, CA

Congress Street Bridge in Austin, Texas, where median home prices have fallen. The city was a hotspot during the pandemic and now homes aren’t selling

In Dallas, 

Tampa (pictured) posted the highest foreclosure rate in October 2025 of all major metro areas in the United States 

Tampa is one of the metros with the top lowest seasonally adjusted level on record except April 2020, when the coronavirus pandemic halted the housing market

Sellers are also listing less, as they know there are few buyers out there. New listings fell 1.4 percent month over month and were down 4.9 percent from a year earlier. 

‘Breaking even is a win for home sellers in today’s market. Some sellers who bought in the past five years are finding themselves underwater after accounting for closing costs and commissions,’ Williams said.

‘Buyers see dollar signs if a home is outdated, so sellers should make sure their homes are well maintained and provide a pre-inspection.’

The typical home that sold in December went for 1.8 percent less than its final list price, the biggest December discount since 2022. Just 22 percent of homes sold for more than their final list price.

In Houston, the typical home that went under contract did so in 79 days, which was 19 days longer than a year earlier—the biggest increase among the metros analyzed.