(NewsNation) — Across the nation, 10 ZIP codes have seen noticeable drops in home prices since 2024, with costs dropping by up to 25%, according to new research from Realtor.com.
Notably, the 12-month tumble in listing prices was not confined to one region or state. The reasons behind the dropoffs are varied, according to Hannah Jones, a senior economic research analyst.
In the report, Jones said these locales’ housing markets are likely already regulating themselves.
“Areas where prices climbed quickly may be seeing a correction. ZIPs where inventory has started to build up, as is the case in much of the south, could see prices fall as sellers look to attract buyer attention,” Jones said.
Where to buy or sell a home this spring, according to Zillow
Spotswood, New Jersey
The location with the sharpest decline in home prices is Spotswood, a small town located roughly 40 miles outside New York City.
The current median home price is $449,000, down 25% year-over-year.
South Elgin, Illinois
Situated along Illinois‘ Fox River about an hour outside of Chicago, South Elgin recorded a 25% drop in home prices in the last year.
The median home price comes in at $384,900.
Carlsbad, California
Carlsbad is one of the most expensive areas on the list, with median home list prices hitting a whopping $1.19 million.
Located just north of San Diego, the California city’s pricey listings dropped 25% year-over-year.
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Raleigh, North Carolina
North Carolina’s capital has seen a 25% drop in home prices in the last 12 months, with median prices ringing in at $465,000.
Tomah, Wisconsin
Central Wisconsin’s city of Tomah saw a similar 25% drop in home prices in the past year. Median home listing prices dropped to $225,000.
Other areas with the steepest price drops include DeQuincy, Louisiana (25%); North Miami Beach, Florida (25%); San Jose, California (25%); York, Maine (24.9%); and Schenectady, New York (24.9%).
There are signs that this spring homebuying season is shaping up to be more favorable for home shoppers than it’s been in recent years — as long as they can afford to buy.
Home prices are rising more slowly. Mortgage rates remain elevated, but have been mostly easing and could be headed lower if the U.S. economic outlook continues to darken over the Trump administration’s widespread tariffs, which have rattled financial markets and stoked fears of a recession.
Most importantly, the number of homes on the market is up sharply from a year ago.
While the inventory of homes for sale nationally is still low by historical standards, active listings — a tally that encompasses all homes on the market except those pending a finalized sale — surged 28.5% last month from a year earlier, according to data from Realtor.com. Listings jumped between 44% and 68% in many large metro areas, including San Diego, Las Vegas, Atlanta and Washington D.C.
As homes take longer to sell, prices have started dropping in many markets. The median listing price was down last month from a year earlier in most of the nation’s biggest 50 metro areas, including a more than 6% drop in Austin, Miami and Kansas City.
These trends should give prospective homebuyers more leverage as they negotiate with sellers this spring, though they are unlikely to be a game-changer for many aspiring homeowners priced out of the market after years of soaring prices.
The Associated Press contributed to this report.
