Housing Market Shock: 110 Areas See Major Price Drops Amid Inventory Surge

San Antonio, Texas, USA - As of mid-July 2025, the Florida housing market is exhibiting a noticeable cool-down, reflecting broader national trends. This year’s data reveals a puzzling picture of slight home price growth, yet a significant number of markets are facing declines. According to ResiClub Analytics, national home prices rose by a mere 0.2% year-over-year from June 2024 to June 2025, a sharp drop from a more robust 3.2% increase in the same timeframe the previous year.

In Florida, the situation is particularly interesting. Big markets like Tampa and Miami have seen considerable price drops: Tampa’s home values are down by 5.7%, while Miami trails with a 3.8% decline. This is part of a larger trend as ResiClub notes that 110 markets across the nation experienced year-over-year declines by June 2025, underscoring a larger pattern of decreasing demand amidst rising interest rates and the easing of pandemic-driven migration.

Market Trends and Regional Impacts

From January to April, Florida saw a significant number of housing markets facing challenges. In fact, from March 2024 to March 2025, 60 markets experienced declines, ramping up to 110 by June. A prime contributor to this trend is the increase in housing inventory in the Sun Belt region, with builders responding to an excess supply by offering competitive pricing or incentives to buyers looking to seal the deal.

The HSH Home Value Tracker adds further insight, providing data on over 400 U.S. markets to pinpoint where the highs and lows are occurring. Interestingly, while many Florida areas are struggling, others are seeing modest appreciation, depending on their inventory levels and buyer demand. For instance, North Port-Bradenton-Sarasota noted a decline of 3.80%, while Cape Coral-Fort Myers dropped by 2.98% HSH.

A Broader Perspective on Home Values

On a national scale, the fallout from the pandemic era’s housing boom is palpable. Many markets that once thrived have been turning downwards as consumer confidence wavers, influenced by rising mortgage rates and overall economic factors. This combination makes for a rather constricted market atmosphere. As reported by NAR, some encouraging signs do persist, including the indication that 190 markets continue to enjoy year-over-year price growth, reflecting pockets of resilience amidst widespread declines.

The top ten metropolitan areas to note for the fastest year-over-year appreciation are mostly in less populated regions and might not reflect the experiences of large cities. This illustrates that while some areas bubble with growth, many others, especially in the Sun Belt like Florida, face stark corrections. The challenges ahead might mean we see increasing volatility in markets, where buyers are currently taking a more cautious approach.

With the upcoming months poised to reveal how these trends evolve, keeping a close watch on local market shifts will be essential for both buyers and sellers as they navigate this changing landscape.