According to the latest data, the US housing market is facing a turning point. Out of the 300 largest real estate markets in the country, 109 saw a decline in housing prices from June 2024 to June 2025, accounting for over one-third. This indicates a rapid shift in market dynamics, leading experts to believe that “the leadership of the US housing market has shifted to buyers.”
ResiClub’s research shows that in January of this year, there were only 31 markets experiencing a decline in housing prices. The sharp increase in the number of markets with falling prices in just a few months reflects a growing number of homeowners eager to sell their properties, resulting in a market downturn.
Furthermore, the national average annual home price growth has significantly slowed down. According to Zillow’s Home Value Index, as of June this year, the annual price growth is only 0.2%, much lower than the previous year’s 3.2%. In Punta Gorda and Cape Coral, Florida, prices have plummeted by 11.88% and 9.56% respectively, making them the markets with the largest declines in the country.
Cape Coral, which experienced a surge in prices during the pandemic due to a large influx of population, has now become a “disaster area” in the housing market. Rising property taxes and insurance costs, coupled with high risks of natural disasters, have deterred buyers. Local real estate agent José Echevarria told the Daily Mail, “Currently, this is one of the worst real estate markets for sellers.”
ResiClub points out that many areas experiencing price drops are cities that attracted a significant influx of population during the pandemic, such as Tampa, Orlando, and Jacksonville.
In addition to Florida, several cities in Texas and Arizona are facing similar pressures. Cities like Austin, San Antonio, Dallas, and Phoenix have also seen declines in housing prices.
This spring, the US housing market hit its lowest performance in 13 years, marking the quietest sales season since 2012. Redfin data shows that home sales volume from April to June this year hit a new low, with viewing activities almost halting in some areas. Buyers are hesitant due to high prices and interest rates, while sellers are struggling to reduce prices.
Asad Khan, a senior economist at Redfin, said, “The leadership of the US housing market has shifted to buyers, but many sellers have yet to realize or accept this reality. Many still hold hope that their homes are exceptions and can still be sold at high prices.” The platform estimates that there are currently around 2 million homes for sale in the US, but only 1.5 million active buyers, creating a historical gap of 500,000 units.
Earlier this year, analysts predicted that the market might rebound with a slight decrease in mortgage rates and softening listing prices. However, this optimism has faded away.
The indecision of buyers, continuous price reductions of listings, and frustrated sellers have led real estate agents to describe the market as “paralyzed.” Real estate agents warn that only when sellers start seriously reducing prices can the market have a chance to recover.
“We thought we had hit rock bottom, but we keep discovering there are deeper lows,” said Chen Zhao, the director of economic research at Redfin.
Economist Thomas Ryan from Capital Economics warns, “The outlook for the real estate market is bleak. Affordability of housing has dropped to its worst since the 1980s, and the housing market outlook remains grim.”
Market performances vary across the US. In the Northeast and Midwest, scarce housing inventory continues to drive up prices.
However, in sunny metropolitan areas like Florida, Texas, and Nevada, housing inventory keeps increasing while sales volumes decline significantly.
According to Redfin data, in Las Vegas, the number of active listings has surged over 38% compared to the same period last year, while sales have dropped by 15%. Real estate agent Angela O’Hare said, “The fear of missing out has shifted from buyers to sellers.”
Luxury residential areas like Narragansett in Rhode Island have started showing signs of uncertainty.
Johnny Sheil, a sales agent at Mott & Chace Sotheby’s International Realty, said, “We are now seeing significant price drops in various areas of Rhode Island, and uncertainty is making some people fearful.”
Currently, oversupply of homes in some major cities has become a nightmare for sellers. Experts warn that significant improvements in the housing market are unlikely in the remaining time of this summer.
(Adapted from a report by the Daily Mail)