Falling Home Prices Hit 54 Major U.S. Metro Markets

Falling Home Prices in U.S. Metro Markets

The latest Reuters briefing notes that the Zillow Home Value Index shows a ↑ 1.3% year‑over‑year rise nationwide between August 2025 and August 2026, yet the pace is described as soft. 54 of the nation’s 300 largest metros recorded ↓ 54 markets with year‑over‑year declines in that period, representing 18 % of the sample.

Historical snapshots reveal that the share of markets slipping into negative growth surged after 2024, peaked at 36 % in 2024‑25, and has now steadied. Inventory growth slowed as buyer leverage waned, especially in Sunbelt hubs where supply outpaced demand.

“The market is transitioning from pandemic‑driven frenzy to a more balanced footing,” said a senior analyst at Bloomberg.

Regions where active listings remain below 2019 levels—parts of the Northeast and Midwest—still register modest gains. Conversely, Texas, Florida and Colorado metros, where inventory exceeds pre‑pandemic benchmarks, exhibit flat or mildly declining prices.

Analysts caution that a further rise in the 30‑year fixed mortgage rate above 7 % could trigger another wave of softness. Monitoring local inventory trends over the next quarter will be essential.

Dispatch from: Nathaniel Reed

Wealth Management Correspondent