54 Major Housing Markets Experience Falling Prices

Nationally, U.S. home prices saw a 1.3% year-over-year increase between August 2025 and August 2026. However, a significant portion of major markets experienced a downturn, with 54 out of the 300 largest housing markets seeing prices fall compared to the previous year. This represents 18% of these key markets, according to ResiClub's analysis of the Zillow Home Value Index.

The current situation marks a notable shift from previous periods. In the year leading up to August 2023, a much larger 78 of the largest markets recorded year-over-year price declines. While the number of markets in decline has decreased, the figure of 54 still indicates a divergence in market performance across the country.

Regional trends show considerable variation. Areas with active inventory levels still below pre-pandemic 2019 figures, such as parts of the Northeast and Midwest, are experiencing continued price appreciation. In contrast, markets like those in Texas, Florida, and Colorado, where active inventory exceeds pre-pandemic levels, are facing price corrections, modest pullbacks, or stagnation.

The analysis suggests that many of the markets experiencing price softness are located in Sun Belt and Mountain West regions. These areas saw substantial price surges during the pandemic housing boom, fueled in part by migration. Increased new home construction in these regions has also contributed to higher resale inventory, putting downward pressure on prices. Future market direction may be influenced by rising mortgage rates, making local inventory levels a key indicator to monitor.