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, and an increasing number of areas recorded year-over-year declines in home prices. 

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

In January 2025, 31 of the nation’s 300 largest housing markets saw year-over-year home-price declines. However, by December of last year, that share had grown to 106 metros, or 35% of those markets—a slight decline from the June 2025 peak of 110 (or 36%) of metros recording 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 those in the Gulf Coast and Mountain West—where new-home builders have added considerably to the local housing inventory.

For instance, Punta Gorda, Fla., saw the largest year-over-year price decline among the metros surveyed, with a 12.38% year-over-year drop. Likewise, the Cape Coral-Fort Myers, Fla., metro and the Sarasota, Fla., metro saw respective price declines of 9.65% and 8.16%.