According to the Daily Mail, Realtor.com’s latest 2026 forecast shows that in the 100 largest metropolitan areas in the U.S., home prices in 22 cities are expected to decline next year. This marks a rare trend reversal after years of soaring housing prices, which had forced countless buyers to remain “shut out” of the market.
Southeast and West lead declines: Florida cities see notable drops
In Florida, 7 of the state’s 8 major cities are projected to see price declines in 2026, with only Miami expected to rise slightly by 1.1 percent.
The largest decline is expected in the Fort Lauderdale metro area, where home prices are forecast to fall 10.2 percent, followed by the North Port–Sarasota–Bradenton region, expected to drop 8.9 percent.
Jake Krimmel, senior economist at Realtor.com, explained that increased inventory in some areas, giving buyers more choices, is a key factor driving the declines. In an interview with CBS, he noted that the “home-buying frenzy” during the pandemic is gradually easing.
On the West Coast, Sacramento, Stockton, and historically overpriced San Francisco are all expected to see declines, with San Francisco prices projected to fall 2.5 percent.
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Phoenix and Tucson in Arizona are expected to drop 2.3 and 0.5 percent, respectively.
Additionally, Colorado, Washington, Idaho, Iowa, and southern cities such as Atlanta and Raleigh are also expected to see varying degrees of price corrections.
However, the Daily Mail cautions that falling home prices are not purely beneficial. They may reflect weaker demand, increased financial pressures, or tighter credit conditions, which could affect consumer spending, construction jobs, and heighten the risk of economic slowdown.
Buyers gain the upper hand, but high prices and rates remain a challenge
Although many cities saw a “buyer-favored” market this year, with sellers forced to cut prices or withdraw listings, buyers still face high home prices and mortgage rates.
As of October 2025, the median U.S. home price approached $440,000, up 1.3 percent year-over-year. The average 30-year fixed mortgage rate was about 6.6 percent, keeping the burden of buying heavy.
Fortunately, forecasts suggest that in 2026, mortgage rates may slightly decline to 6.3 percent. Combined with price corrections in some cities, buyers’ pressure could ease somewhat.
Among the 100 largest metro areas, 78 are still expected to see price increases, though these gains are moderate, with a median rise of about 4 percent.
Market gradually returning to ‘buyer-seller balance?’
Although home prices remain near historical highs and mortgage rates are above 6 percent, the 2026 housing market is expected to become more “buyer-friendly,” potentially marking the most balanced year since the pandemic.
Krimmel noted that with lower borrowing costs and strong wage growth next year, more potential buyers may re-enter the market.
He said, “2026 will be a year of market stabilization, showing more signs of a return to normal.”
Realtor.com predicts that existing home sales will rise nearly 2 percent in 2026, reaching 4.13 million units, up slightly from 4.07 million this year. In the context of weak transactions in 2025, this change is significant.
