U.S. home prices grew slightly in March, but on a year-over-year basis, they declined by 4.6%. While prices continue to rise in many areas—especially in the Northeast and Midwest where housing supply is low—20% of the largest U.S. housing markets are now experiencing price drops, according to the ResiClub blog.
These markets are predominantly located in states such as Arizona, Texas, and Florida, where prices previously soared during the pandemic housing boom. Austin, Texas, for instance, saw a 4.6% decline in housing prices in March, while Tampa, Fla., San Antonio, and Phoenix saw prices decline by 4.5%, 2.7%, and 2.5%, respectively.
The markets seeing the most softness, where homebuyers have gained the most leverage, are primarily located in Sun Belt regions, particularly the Gulf Coast and Mountain West. These areas saw major price surges during the Pandemic Housing Boom, with home price growth outpacing local income levels. As pandemic-driven migration slowed and mortgage rates rose, markets like Tampa and Austin faced challenges, relying on local income levels to support frothy home prices. Read more
