Realtors Predict Home Prices in These 9 Cities Will Crash in the Next 6 Months

Buying a home is a major financial commitment. For many, waiting for reasonable prices is a smart homeowner move and part of the buying process. If you've been waiting, the potential of lower housing prices might be music to your ears.

This guide explores some cities where housing prices might fall in the next six months.

Houma, Louisiana

Average home price: $189,831

In part due to its vulnerable coastal location, Houma's housing market is poised to take a tumble.

"Homeowners insurance there, depending on the size and price of the home, can run around $7,300, the single highest in the state, and close to triple the national average," says Ryann Brier, Realtor with City Lights Home Buyers. "In this instance, it's going to be more expensive to keep the house than to sell it."

Tampa, Florida

Average home price: $380,283

Home prices in the Tampa area are already on a downward slide, which is affecting both single-family homes and condos.

"This may have something to do with the post-Surfside safety law, which bans condo associations from waiving the need for extra reserves to keep costs low," says Brier.

The increased costs have turned buyers away, which may lead to falling prices soon.

New Orleans, Louisiana

Average home price: $247,590

New Orleans boasts a wonderful culture and plenty of amazing food options. But the housing market here is starting to slow, which could indicate a coming crash.

"Properties are taking 75 days or more to sell in this market, and for good reasons: buyers want multiple insurance quotes and the flood elevation certificates, all before booking a showing to actually see the home," says Brier.

The real threat of flooding and possible problems with older homes makes buyers hesitant to move forward. And as demand slows, prices may fall.

Cape Coral, Florida

Average home price: $337,346

Cape Coral represents another area vulnerable to flooding. After a rash of hurricanes in recent years, many homes in the city are simply sitting vacant due to a lack of buyers. Even for those interested in purchasing a property, most are more aware of the potential costs associated with coastal living now.

"Declining prices, or offers, could be due to agents instructing clients to buffer in seawall replacement or insurance costs when making their offers," says Brier.

Lake Charles, Louisiana

Average home price: $208,278

In this hurricane-prone area, homeowners have recently weathered several tough storms. In the aftermath, foreclosure rates have been ticking up over the last several years.

The increasing foreclosure rate makes it "one to watch," according to Brier.

Austin, Texas

Average home price: $507,622

Austin has consistently drawn in newcomers, especially since the pandemic. But the area's steep home price climb seems to finally be at an end. In part due to building new housing supply and rising interest rates, Austin has seen home prices level out a bit.

"The market is now seeing a correction as prices and affordability levels return to more reasonable levels," says Ken Corsini, co-owner at RED BaRN Homebuyers.

Denver, Colorado

Average home price: $538,992

In the mile-high city, housing prices seemed to reach mile-high points in recent years. During the pandemic, demand soared as new residents flocked to this growing city with easy access to mountains.

"There is a rising inventory of houses for sale, and the demand for them is falling," says Corsini.

San Antonio, Texas

Average home price: $250,888

With more houses coming on the market, housing prices in San Antonio are poised to take a tumble.

"It led the whole of Texas in terms of year-over-year inventory growth this year," says Humberto Marquez, founder of Surge, a short-term rental firm.

Marquez continues, "I'd expect San Antonio's declines to get worse through the end of the year."

Punta Gorda, Florida

Average home price: $335,672

Tucked into the Southwest corner of the Sunshine State, Punta Gorda has seen significant hurricane activity in recent years. When combined with rising insurance costs, many residents are choosing to leave and putting home prices on a downward trend.

"Everyone is just waiting for a bit of a rate cut to sort these markets out. Rates aren't the problem," says Marquez. "In Southwest Florida, the insurance bill is now the mortgage payment and no rate cut the Fed throws out is going to fix that."

Bottom line

To homebuyers, rising and falling home prices can feel like a rollercoaster ride. But even for homeowners, peaking and crashing prices can play on their financial options, especially those considering tapping into their home's equity. Regardless of your housing situation, it's usually a good idea to keep tabs on the changing market in your area.

This article is for informational purposes only and should not be considered investment advice.

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