5 Cities Where Home Prices May Decline in 2025

While national home prices are expected to rise modestly in 2025, CoreLogic’s latest Market Risk Indicator identifies Provo, Tucson, Albuquerque, Phoenix, and West Palm Beach as at-risk markets for declining home prices. These Sun Belt cities saw rapid price growth post-pandemic but are now adjusting due to higher inventory levels, cooling demand, and affordability challenges.

Why Are These Markets at Risk?

• Higher mortgage rates (around 7%) are slowing buyer activity.
• Rising inventory levels are increasing competition for sellers.
• Higher property taxes and insurance costs are impacting affordability.

How Does Colorado Springs Compare?

Unlike the at-risk markets, Colorado Springs remains a competitive and desirable market due to limited housing supply, a strong job market, and continued buyer demand.

📌 Key Trends for Colorado Springs in 2025:
✔️ Home prices are projected to increase, though at a more moderate pace than in previous years.
✔️ Buyer demand remains steady, especially from those relocating to Colorado Springs for jobs, military assignments, and lifestyle benefits.
✔️ Inventory is still lower than pre-pandemic levels, meaning homes in good condition and priced right continue to sell well.
✔️ Mortgage rates are a challenge nationwide, but many buyers are adjusting by exploring creative financing options, rate buy-downs, and new-build incentives.

What This Means for Buyers and Sellers

✅ For buyers: Colorado Springs remains a solid long-term investment, with steady appreciation and strong demand supporting home values. If you're looking to buy, staying informed and acting strategically will be key.
✅ For sellers: While demand remains strong, pricing strategically and ensuring your home is well-presented will be crucial to attracting serious buyers in this shifting market.

💡 The real estate market is always evolving—whether you're buying or selling, having expert guidance makes all the difference!

🔗 Read the full article here: Realtor.com