National home price growth is slowing, but in some local markets, prices are actually declining. According to an analysis of Zillow data from the ResiClub blog, 96 (or 32%) of the 300 largest housing markets are currently experiencing year-over-year home price declines. Comparatively, from January 2024 to January 2025, just 31 (10%) of those markets were experiencing year-over-year price declines.

Recording a 5.5% year-over-year decline, Austin, Tex., saw home prices fall the most. This was followed by Tampa, Fla., where home prices fell by 5.4%, as well as Dallas and Phoenix, which both recorded declines of 3.4%. 

Home prices are still climbing in many regions where active inventory remains well below pre-pandemic 2019 levels, such as pockets of the Northeast and Midwest. In contrast, some pockets in states like Arizona, Texas, Florida, Colorado, and Louisiana—where active inventory exceeds pre-pandemic 2019 levels—are seeing modest home price corrections.