The U.S. housing market is always changing, but property prices have largely gone up over the years. In certain markets, particularly in Texas, there’s actually been a more recent a decline. Depending on buyer demand, supply, and other economic factors, some housing markets could plummet in value within the next 12 months or so.
Dallas, Texas is one housing market where prices have already started to go down and could continue to do so.“In Dallas, affordability is becoming a serious concern,” said Levi Rodgers, a real estate broker and the founder of VA Loan Network.“High home prices, paired with the current high rates, are leading to fewer buyers in the market,” he continued. “This could result in a price correction over the next 12 months.”
San Antonio, also in Texas, has seen a similar downward trend in home values in the past year.“There has been strong growth, but with high rates and a surge of new home construction, supply is outpacing demand right now,” said Rodgers.When supply outpaces demand, home values tend to decline. This is especially common when homes sit on the market for longer. Given this, Rogers expects the San Antonio housing market to cool off even more by the end of 2025.
While home values haven’t declined much in Austin, the typical home stays on the market for over two months. This is a sign of a potentially cooling housing market.“Austin’s market skyrocketed during the pandemic, particularly with the tech industry boom, but now we’re seeing prices stabilize,” said Rodgers.He predicts that Austin will continue to see prices decline as more new developments crop up and housing interest rates remain high.
Interestingly, home prices are actually up in Phoenix, Arizona. That said, some real estate experts still believe the housing market could take a turn in the coming months. “Phoenix had a big housing boom during the pandemic but now there’s less demand and more homes for sale,” said Sergio Aguinaga, a real estate investor, experienced house flipper and the founder of Michigan Houses For Cash. As is the case in other U.S. housing markets where supply is high and demand is low, this could lead to a decline in prices. Given last year’s performance in Phoenix, it really could go either way.
Like Phoenix, Boise has seen a price hike in recent years. Nevertheless, the city could see a shift before the end of 2025. “Boise saw home prices rise quickly in the last few years, but now that’s slowing down,” said Aguinaga. If interest rates remain high, Aguinaga predicts that even fewer people will be buying homes in the area. This could lead to a further decline in home prices.
Florida housing prices will likely fall because of an oversupply of homes on the market (due to increased building), new condo regulations (leading to HOA increase), and higher flood insurance policies
California housing prices could decline because of the state’s high tax rate, higher crime rate, and decreasing job market (combined with an increase in remote work opportunities and more people leaving the state). Washington. Home values could fall for similar reasons to what’s happening in California.
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