Share of Metros With Declining Home Prices Grows

In December 2025, nationwide home prices grew by just 0.1% month-over-month, and on a year-over-year basis, they grew by 2.6%, according to the ResiClub blog. However, home-price growth varies greatly by metro, with many areas even recording year-over-year declines. 

In January, just 31 markets had falling home prices, but that grew by the end of the year

In January, 31, or about 10%, of the nation’s 300 largest housing markets saw year-over-year home-price declines. However, by December, that figure grew to 106, or 35%, of the nation’s 300 largest housing metros. Still, this is a decline from the peak in June, when 110, or 36%, of the nation’s 300 largest housing markets recorded year-over-year home-price declines.

Which markets are seeing home prices fall the most?

Housing markets seeing the biggest drops in home prices are primarily located in the Sun Belt regions—especially metros in the Gulf Coast and Mountain West—where builders have added considerably to the local housing inventory.

Many of these metros are located in Florida. Punta Gorda, Fla., saw the largest year-over-year price decline. There, home prices fell by 12.38% year-over-year. Likewise, the Cape Coral-Fort Myers, Fla., metro and the Sarasota, Fla., metro saw respective price declines of 9.65% and 8.16%.