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Last month, Zillow updated its 2025 forecast to show home prices declining by 1.4% this year.
Nationwide, the average home price has risen 1.4% over the last 12 months. But growth has slowed considerably over that period, and home prices have already started falling.Over the last three months, Zillow shows the nationwide average home value dip by 0.1% to $367,711.
Of course, there’s no such thing as a “national” housing market. There are simply thousands of local markets, each moving based on local supply and demand. And more of those local markets have started falling in recent months.
Cities With Annual Price Declines
Of the nearly 900 cities that Zillow tracks across the US, 141 saw home prices decline over the last year.
Many of them were pandemic darlings like Austin, Texas, which shot up at shockingly fast appreciation rates.
“In Texas and the Southern region, homes that would’ve sparked bidding wars last year are now seeing nothing but lowball offers, and in many cases, price reductions,” Franklin Ivy, owner of Sound Homebuyers, tells BiggerPockets. “Sellers are having to sweeten the deal or be more realistic on price to get traction.”
In fact, correcting real estate markets that overshot their fundamentals is precisely why the Co-Investing Club I help organize at SparkRental tries to avoid chasing “the next hot market.” We typically look for stable, cash-flowing properties and markets—when we invest in residential real estate at all.
Here are the 20 worst-performing cities by annual appreciation rate:
Metro Area
Median Home Price
12-Month Change
3-Month Change
Greenville, MS
$57,750
-19.50%
-4.14%
Big Spring, TX
$147,852
-14.10%
-1.35%
Vernon, TX
$99,583
-10.71%
-3.64%
Punta Gorda, FL
$323,060
-9.69%
-2.74%
Bennettsville, SC
$84,948
-8.90%
-4.05%
Camden, AR
$99,701
-7.86%
-4.63%
Cape Coral, FL
$364,765
-7.81%
-2.57%
North Port, FL
$427,571
-7.42%
-2.19%
Pecos, TX
$166,471
-7.06%
0.12%
Sweetwater, TX
$115,106
-6.88%
-2.80%
Naples, FL
$593,023
-6.50%
-1.87%
Silver City, NM
$192,012
-5.78%
-3.04%
Magnolia, AR
$128,005
-5.50%
-4.30%
Opelousas, LA
$127,558
-5.16%
-0.84%
Taos, NM
$453,117
-5.14%
-0.08%
Bainbridge, GA
$152,995
-4.90%
-3.40%
Plainview, TX
$116,757
-4.89%
-2.96%
Eureka, CA
$446,023
-4.52%
-1.59%
Austin, TX
$457,835
-4.49%
-1.73%
Panama City, FL
$349,490
-4.36%
-0.38%
Cities with Three-Month Price Declines
As you’d expect in a cooling real estate market, more cities are showing home price declines over the last three months than over the last year. Fully 339 cities across the country saw home prices declineover the last three months.