Where will prices drop in 2026?

Where will prices drop?

Most of the 22 cities where home prices are forecast to drop next year are located in the Southeast and the West. For instance, seven of the eight largest cities in Florida are projected to see declines in home prices next year, with the sole exception of Miami, the report said.

The Cape Coral-Fort Lauderdale metropolitan area is expected to see the nation’s largest price decline next year, with homes dropping by 10.2%, the analysis says. That’s followed by the North Port-Sarasota-Bradenton, Florida region, with an 8.9% decline.

The cities with projected price drops include those where inventory has expanded, providing more choices for buyers, Krimmel said. Some of those metropolitan areas may now also have lighter demand from buyers compared with the COVID-era real estate boom, which was fueled by low mortgage rates and a shift to work-at-home policies.

“These places, among others, saw a huge frenzy during the pandemic, so part of what we are projecting is that demand continuing to come back down to earth,” Krimmel told CBS News.

Prices are expected to rise in the other 78 largest U.S. cities, but the hikes are likely to be small, with a median price gain of 4% across those locations.

To make its projections, Realtor.com examined inventory, new construction, price growth, wage and job growth, and unemployment across the 100 cities.