Homebuyers Eye Bargains in the Sun Belt: Top 10 U.S. Cities with Rapidly Dropping Home Prices

Homebuyers Eye Bargains as Sun Belt Cities See Rapid Price Drops

As the housing market shifts, homebuyers seeking deals may want to turn their attention to the Sun Belt. A recent report highlights the ten U.S. cities experiencing the fastest declines in home prices, a trend fueled by surging inventory, rising mortgage rates, and waning demand.

From Arizona to Florida, sellers in these regions are increasingly slashing prices to attract buyers, creating a rare opportunity in an otherwise challenging housing landscape.

Why It Matters

After years of soaring home prices—especially during the pandemic housing boom—many U.S. cities are now witnessing price corrections as inventory rises and buyer interest softens. Analysts warn that the housing market may be entering a prolonged downturn. While falling prices could help aspiring buyers, particularly younger ones, gain entry into the market, the trend poses challenges for sellers and developers.

Key Insights

According to data from Realtor.com, nine of the ten cities with the most significant home price cuts are located in the Sun Belt, with over half of them in Florida. In April, approximately one-third of listings in North Port and Tampa saw price reductions, followed by over 28% in Cape Coral and more than 27.5% in Jacksonville. Denver, Colorado, is the only city outside the Sun Belt to make the list.

Each of these cities has experienced a notable increase in housing inventory compared to last year, with Palm Bay seeing a nearly 28% rise and Denver experiencing a staggering 65% increase.

Cities Leading the Price Drop

1. Phoenix, Arizona: Leading the pack, Phoenix has 31% of home listings seeing price cuts. The city currently boasts nearly 19,981 properties on the market, a 33% increase in inventory from last year. The median list price stands at $525,000, with homes typically remaining on the market for 52 days.

2. North Port, Florida: Following closely, North Port has 30% of listings reduced in price. With 11,234 listings—up 32% year over year—the median asking price is $490,500, and homes average 70 days on the market.

3. Tampa, Florida: In Tampa, 29% of listings have seen price reductions. The city has 19,310 homes available, a 32% rise in inventory. The median price is $410,000, with homes spending an average of 58 days on the market.

4. Cape Coral, Florida: Cape Coral mirrors this trend, with 28% of homes seeing price cuts. Listings rose 41% to 14,580, and the median price is $435,000. Homes here are taking longer to sell—about 81 days on average.

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

6. Denver, Colorado: Denver has 27% of listings with price reductions amid a sharp 65% jump in inventory, 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 ten cities.

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

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

9. Austin, Texas: In Austin, 26% of the 11,073 listings have been reduced in price. Inventory is up 25%, and the median list price is $525,000. Homes sell slightly faster than most on the list, averaging 44 days on the market.

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

Expert Opinions

Realtor.com senior economic research analyst Hannah Jones noted, “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, commented on X (formerly Twitter), stating, “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 Lies Ahead

Gerli previously warned that while house prices are rising in places like New York, they have dropped 2.4% in Florida over the past year. He estimates that house prices in Florida will decrease by an additional 5% in the coming year. In Arizona, prices are down 6.9% from their peak in June 2022.

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

As the housing landscape continues to evolve, potential buyers may find themselves in a unique position to negotiate favorable terms in a market that is increasingly favoring them.