Homebuyers looking for bargains may want to set their sights on the Sun Belt. A new report reveals the 10 U.S. cities where home prices are dropping the fastest, driven by surging inventory, rising mortgage rates, and softening demand.

From Arizona to Florida, sellers in these markets are increasingly slashing prices to attract buyers, offering a rare opening in an otherwise tough housing market.

Why It Matters

After years of skyrocketing home prices, especially during the pandemic housing boom, a growing number of U.S. cities are seeing price corrections as inventory climbs and buyers pull back.

This has led some analysts to warn that the housing market could be heading into a prolonged downturn. A fall in prices could help aspiring buyers, especially young ones, break into the market. But for sellers and developers, the trend may signal tougher conditions ahead.

What To Know

Realtor.com data shows that nine of the 10 U.S. cities with the most home price cuts are in the Sun Belt, over half in Florida. In April, about one-third of North Port and Tampa listings saw price drops, followed by more than 28 percent in Cape Coral and over 27.5 percent in Jacksonville.

Denver, Colorado, is the only city outside the Sun Belt to make the list.

Each of these cities has seen a sharp rise in housing inventory compared to last year, ranging from nearly 28 percent in Palm Bay to 65 percent in Denver.

Phoenix, Arizona

Phoenix tops the list with 31 percent of home listings seeing price cuts. The city currently has nearly 19,981 properties on the market, a 33 percent increase in inventory compared to last year. The median list price is $525,000, and homes typically stay on the market for 52 days.

North Port, Florida

North Port follows with 30 percent of listings reduced in price. With 11,234 listings, up 32 percent year over year, the median asking price is $490,500, and homes are averaging 70 days on the market.

Tampa, Florida

In Tampa, 29 percent of listings have seen price reductions. There are 19,310 homes available, a 32 percent rise in inventory. The median price is $410,000, with homes spending 58 days on the market.

Cape Coral, Florida

Cape Coral shows a similar trend, with 28 percent of homes seeing price cuts. Listings rose 41 percent to 14,580, and the median price is $435,000. Homes in the area are taking longer to sell—about 81 days on average.

Jacksonville, Florida

In Jacksonville, 28 percent of homes have reduced prices. The city’s inventory is up 35 percent, reaching 9,676 listings, with a median list price of $399,995 and an average of 57 days on the market.

Denver, Colorado

Denver reports 27 percent of listings with price reductions amid a sharp 65 percent jump in inventory, now totaling 10,345 listings. The median home price is $599,450, with properties spending just 36 days on the market—the fastest among the top 10 cities.

Palm Bay, Florida

In Palm Bay, 27 percent of listings have price cuts. Inventory rose 28 percent to 4,562 properties, with a median list price of $389,825. Homes here average 61 days on the market.

Deltona, Florida

Deltona also saw 27 percent of homes marked down. Listings climbed to 6,892, up 31 percent, with a median asking price of $394,450 and an average market time of 70 days.

Austin, Texas

Twenty-six percent of Austin’s 11,073 listings have been reduced in price. Inventory is up 25 percent, and the median list price is $525,000. Homes sell slightly faster than most on the list, averaging 44 days on the market.

Charleston, South Carolina

Rounding out the top 10, Charleston reports 26 percent of listings with price drops. Inventory surged 42 percent to 3,542 homes; the median price is $525,000. Homes typically sell in 41 days.

What People Are Saying

Realtor.com senior economic research analyst Hannah Jones said: “As inventory builds up, homes sit on the market for longer, pushing sellers to reduce their asking price to drum up some buyer attention. Buyers are in a good position to negotiate in these markets. Sellers will likely be flexible and willing to negotiate price or terms to be favorable for both parties.”

Nick Gerli, CEO of the app Reventure, on X, formerly Twitter: “Florida’s housing market is in a housing downturn. Prices are dropping all across the state, and will likely continue to drop for years due to an oversupply of housing combined with record lack of affordability.”

What Happens Next

Gerli previously warned that while house prices are rising in places such as New York, they have dropped 2.4 percent in Florida in the past year. He cited estimates from Reventure that house prices in Florida will drop a further 5 percent in the coming year.

Gerli also warned that home prices in Arizona are down 6.9 percent from their peak in June 2022.

“This market is trending down, and trending down fast,” he said in a recent YouTube video.

He added that the market correction in Arizona is “going to accelerate over the next 12 months due to a massive pileup of inventory and supply on the market that is now causing sellers to freak out.”