Realtors Predict Prices Will Plummet in These 10 Housing Markets in 2025

The 2025 housing market is off to a hot start. Home prices are stabilizing nationally, and inventory is increasing. Active listings were up almost 25% year-over-year in January, marking 15 straight months of growth.

In some areas, factors like return-to-office mandates are reshaping housing demand, while uncertainty around mortgage rates keep many buyers and sellers on the sidelines. Amidst the uncertainty, some markets are seeing price corrections, signaling hope for buyers.

If you're considering purchasing a home, now may be the time to make some money moves and take advantage of these shifting conditions. Read on to see which markets are primed for resets this year.

Music City boomed in the early 2020s. Now experts predict the market will cool and return to normalcy in 2025.

Currently a buyer's market, Nashville saw an 11% increase in supply from December to January. More than half of homes are selling below asking price, and they're taking an average of 82 days to sell. All these signs point toward a softening market, which could signal good deals for buyers.

The Miami housing market is primed for price adjustments in 2025 after several years of rapid appreciation.

"The growing number of new construction projects and resale properties entering the market will give buyers more options and greater negotiating power," says Mor Ezer, REALTOR® Associate with Brown Harris Stevens.

With no state income tax and year-round warm weather, Miami could be a top choice for individuals and businesses looking for a change of scenery.

Markets across Texas are shifting, including larger cities like Dallas. Even with a median sale price 6% lower than national average, Dallas home prices and mortgage rates are still high.

With fewer people buying, homes are staying on the market almost 19% longer year-over-year. This is a prime setup for a market correction and lower prices as the year goes on.

Outdoor enthusiasts might consider Jacksonville for their next move. In addition to the lower cost of living, Jacksonville is blessed with state parks and recreational activities for all ages — and a promising real estate market.

"We're starting to get some inventory back under our belts," says Trenton Hodges, REALTOR® with Pineywoods Realty. "Plus, sellers are becoming more willing to negotiate, which is helping buyers."

With a median sale price of $296,000 in January, Jacksonville is an appealing option for homebuyers looking for a good deal.

Once a pandemic-era hotspot, this northwestern market is poised for a cooldown in 2025.

Median list prices in Boise are down 2.1% since December; supply is up almost 70% in the same time frame. If rates remain stable or increase, it's likely that even fewer people will buy.

While numbers aren't signaling a potentially steep decline, Boise is likely to stabilize this year, which could be good news for homebuyers.

The New Orleans housing market has cooled in early 2025, creating opportunities for buyers.

Inventory rose in January, with over 2,800 homes for sale — an 8.7% increase from December. Sales slowed significantly, with only 166 homes sold compared to over 300 the previous month.

Home values have also declined 3.7% year-over-year, and a quarter of listings have seen price drops. With homes taking longer to sell and prices softening, now is a good time to take advantage of New Orleans's buyer-friendly market.

Huntsville is one of the fastest-growing tech cities in the country, enticing new residents with its strong job market and economic expansion. This growth has led to an increase in supply; existing homes for sale and new construction are contributing to a 9% year-over-year boost in inventory.

As a result, home prices are adjusting, giving buyers more negotiating power and making Huntsville an increasingly attractive market for those looking to buy.

San Antonio's housing market is experiencing a correction, with home values down 2% year-over-year, and 60% of homes selling below asking price in January. Homes are taking longer to sell and averaging 78 days on the market, that's an 11% increase from last year.

Despite these shifts, San Antonio remains an attractive option for buyers. With a cost of living 9% below the national average and a median sale price that's 40% lower than the national median, River City is an appealing option for buyers hoping to keep more cash in their wallets.

If you're looking for great weather and ample outdoors access, now may be a good time to buy in Denver.

Median sale prices are down 4% year-over-year. Homes sold in 62 days in January, compared to 44 days a year ago. Inventory jumped 58% from December to January, making it more competitive for sellers. Despite these shifts, home values continue to appreciate.

"Our market has leveled," says Stephanie Iannone, Principal Broker with the Iannone Group. "I think we're going to stay steady in the 1-3% appreciation range, compared to the 10% we saw before."

There's more to Kansas City than saucy barbecue. Its housing market is looking pretty attractive to hopeful homebuyers.

Median sale price is trending downward month over month, landing at $254,900 at the end of January. That's 39% lower than the national average.

Additionally, The National Association of REALTORS® identifies Kansas City as an affordable market with increasing inventory, due to lower-than-average mortgage rates and fewer homeowners who are "locked in" with lower rates from previous years.

2025 is shaping up to be a pivotal year in real estate, with mortgage rates playing a key role in market dynamics. If rates drop, increased competition could stabilize prices and speed up home sales — that's good news for those looking to lower their financial stress.

However, experts caution against a "wait and see" approach. 

"If you find a house you really like, act fast and jump on it while you can," advises James Faulkner, a REALTOR® with Realty South in Birmingham. 

With shifting conditions, buyers who are prepared and decisive may have the best opportunities to secure a home at a favorable price.