3 housing markets that will have massive price declines at the beginning of 2025

On January 30, 2025By Littum

The housing market Has cooled since the pandemic drove demand for home to levels far beyond what the inventory could meet. While prices are still rising slower in large parts of the country, they are already falling in some markets and other markets are likely to see falls.

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In the recent housing market forecast for 2025, based on growth forecasts from October 2024 to October 2025, Zillow identified Three Metropolitan Markets, where prices are expected to fall the most this year.

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Median Sales Price: $ 290,833
One year change in average value: -4.6%
Predicted price drop in 2025: 3.8%

New Orleans tops Zillow’s list of metro where prices are ready to fall. From December 2024 prices rose by 6.8% and the number of homes sold increased by 5.9% compared to the year before, according to Redfin -Data.

Houses also sell faster than last year. However, the number of homes with price drop increased almost 7% by 2024, and slightly fewer homes sell at more than list price. More important is that average home values are down to a significant 4.6%. It could signal a market change that is more favorable to buyers.

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Median Sales Price: $ 1,367,667
One year change in average value: +1.4%
Predicted price drop in 2025: 2.3%

Zillow predicts that the San Francisco housing prices will fall by 2.3% this year. Median list prices had already fallen 10.9% years over years from December 2024, according to realtor.com’s December 2024 Monthly housing market trends report.

But data from Redfin Shows that more people sell the above list price compared to a year ago, although this market sees more home with price drop. It suggests that the seller’s expectations are better in accordance with the realities of what was an overheated market. It’s just a matter of time before buyers catch up.

Median sales priceE: $ 555,833
One year change in average value: -3.8%
Predicted Price Reduction: 0.04%

The Austin property market experienced huge gains by 2020 to 2022. November 30, 2024, house prices were still, despite one year’s value of 3.8% compared to the Zillow home value index.

And although the number of sales is also up, it is also the number of days on the market, which means that Homes takes longer to sell. Redfin assesses the level of competition for home one 25 out of 100, which corresponds to a “not very competitive” Redfin Compete Score. Low competition means low demand, which naturally drives prices down.