1. Nashville, Tennessee
Nashville is experiencing a significant increase in inventory, with the number of homes for sale rising from 2,000 three years ago to over 7,000 today. This surge in inventory is leading to substantial price cuts, such as one property originally bought for $800,000 last year now listed for $730,000, reflecting a $70,000 loss.
2. Dallas, Texas
Dallas has seen a massive 31% of sellers cutting their listing prices in the most recent month. The DFW Metro area, including Dallas, Collin, and Tarrant counties, is facing a notable downturn. For example, a newly built home had its price reduced from $475,000 to $420,000 but still remains on the market for 78 days.
3. Phoenix, Arizona
Phoenix has witnessed an 80% increase in the number of homes on the market, rising from 9,000 a year ago to over 16,000. Despite price cuts, homes still feel expensive compared to a few years ago. For instance, a renovated property that was listed at $465,000 in February has now been reduced to $389,000 but remains unsold for 119 days.
4. Huntsville, Alabama
Huntsville’s median listing price has dropped by 9% year-over-year. The surrounding areas, including Decatur and northern Tennessee, have also experienced declines. The price cut rate in Huntsville has reached 33%, the highest on record, signaling a downturn despite the city’s long-term growth potential.
5. San Antonio, Texas
San Antonio is facing a “wall of inventory” with over 10,000 homes currently for sale, a record high. This surplus is causing price declines, and the city’s home price forecast score is low, indicating further potential price drops in the future.
6. Tampa, Florida
Tampa has seen its inventory almost double year-over-year, now at 15,200 homes. The area is experiencing significant price cuts, with properties in St. Petersburg being reduced by up to $150,000. The market’s high overvaluation rate suggests considerable downside risk.
7. Cape Coral-Fort Myers, Florida
The median list price in Cape Coral-Fort Myers has declined by 6.6% over the last year. South Florida, in general, is facing a downturn due to fewer people moving in post-pandemic and many locals seeking to leave due to high costs.
8. Austin, Texas
Austin’s median listing price has dropped by 11% from its peak. Inventory levels have surged to nearly 10,000 homes, the highest in years. Both median listing prices and typical home values are showing significant declines, suggesting ongoing downward trends.
9. Denver, Colorado
Denver has experienced a 6% year-over-year decline in median listing prices. The price cut rate has reached 36%, the highest in seven years. Inventory has also surged, indicating a market downturn that is expected to continue.
10. North Port-Sarasota, Florida
North Port-Sarasota is the city where prices are dropping the most. The median list price is down 9% year-over-year, and inventory levels have reached historic highs. The high rate of price cuts indicates that home prices will continue to decline in this market.