Realtors Predict Major Price Drops in These 9 States in 2025

As of April, the national median sale price in the U.S. is $414,000, according to the National Association of REALTORS® (NAR). Although the national market remains uncertain, there are still states where housing prices are lowering. 

Living in a place with low housing prices can keep your overall costs low, which may be good for those on fixed incomes or when you are looking to build your wealth, and some of these states will allow you to get all of that and more for a great deal.

"It's easy to see why people are attracted to these states," says Nadia Evangelou, Senior Economist and Director of Real Estate Research with the National Association of REALTORS®. "Better housing affordability, more housing supply, lower cost of living, no state income tax in some states, and strong job growth are a powerful combination."

After a popularity surge during the pandemic, the Lone Star State's housing market is experiencing major adjustments.

With inventory increasing, largely thanks to new construction, and slowing demand, Texas is moving toward a more balanced market. As of April, there were nearly 123,000 homes for sale. Continued population growth may affect demand, but major metro areas are likely to keep seeing downward pressure on prices as the year goes on.

The Sunshine State's real estate market is experiencing quite a cooldown. "According to MLS data, inventory in South Florida has increased 336% in the last 24 months," says John Wieland, real estate agent with eXp Realty. That number is in line with statewide inventory, which hit 236,610 in April.

With so much inventory flooding the market, the time it's taking homes to sell is also skyrocketing. That means that potential buyers in Florida can be patient, shop around, and negotiate to their advantage.

According to the Colorado Association of REALTORS®, as of April, new listings across the state were up more than 17% year over year, with the Denver metro area alone seeing nearly a 20% increase. As a result, homes are sitting on the market longer, and sellers are increasingly having to adjust their expectations.

The state is moving toward a more balanced market, but with slower sales and rising supply, price drops are becoming more common, a trend many experts expect to intensify this year.

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In April, 27.2% of homes in Nevada experienced price drops, a 5.2-point rise from 2024. Homes also spent 48 days on the market on average, which is a nine-day year-over-year increase.

Rising interest rates are impacting affordability in some markets, which could slow demand as the year goes on. In Reno specifically, the median sale price in April was down almost 3% from 2024. These patterns suggest that Nevada's housing market may continue to soften as the year progresses.

Tennessee's housing market is returning to pre-pandemic conditions. Statewide inventory reached a four-month supply in April, indicating a shift toward a buyer's market. 

Andrew Austin, a real estate broker in Chattanooga, says Memphis and Nashville saw a surge from buyers seeking more affordable real estate and faster appreciation. Markets like Chattanooga and Knoxville also drew attention, though not to the same extent.

"I'm seeing more distinct price decreases in Nashville, which shows a quicker shift to a buyer's market," says Austin. "In Chattanooga, prices are more balanced, but homes are spending longer on the market."

As inventory increases and days on the market grow longer, buyers are gaining more power in Iowa. The pace of price growth has slowed compared to recent years, signaling a moderation in the market. According to Iowa REALTORS®, active listings jumped nearly 25% in April, which gives buyers more choices and greater negotiating power.

With the median days on market reaching 16, this added breathing room is helping to ease the competitive pressure that defined the pandemic-era housing rush.

Ohio's housing market is becoming increasingly favorable for buyers. In April, newly listed homes reached 14,766, a 61% surge from January. These homes are spending more time on the market, 38 days in April compared to 35 the previous year, and nearly a quarter of homes experienced price drops.

Despite these shifts, the median sale price was $253,200 in April, well below the national median. With a cost of living 17% lower than the national average, Ohio presents an attractive opportunity for prospective homebuyers seeking stronger negotiating power.

The Peach State's housing market is showing signs of rebalancing, particularly in the Atlanta metro area. Citing data from FMLS, Amy Knauf, Managing Broker at Austin Patrick and Associates, says the market is settling back to pre-pandemic numbers, which may lower your financial stress. As of April, homes are spending around 47 days on the market.

"My prediction is prices will start going down toward late summer as days on the market get longer," Knauf says. "The correction will happen when higher prices and longer days on the market intersect."

Montana's housing market is transitioning to a more balanced state. A six-month supply of homes signals a more balanced market and contributes to softening home prices. Median days on market are up to 91, which is almost three weeks longer than last year.

Despite the easing demand, interest in Montana real estate remains, supported by strong job markets in tourism and technology.

According to data from NAR, nationwide inventory is up nearly 20% from a year ago. This growing supply is helping to ease competition and could lead to softer prices in many markets across the country. Even if you're not planning a move right away, staying informed now can help you make smart homeowner moves down the line.

That said, real estate is highly local. Market conditions can vary dramatically from one city to the next. Experts recommend working with a local real estate professional to understand what's happening on the ground and to get the most accurate, up-to-date outlook for your area.