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- 20 Cities Where Home Prices Are Expected To Crash in the Next 12 Months</p>
<p>G. Brian DavisAugust 17, 2025 at 1:01 AM</p>
<p>RoschetzkyIstockPhoto / iStock.com</p>
<p>During and after the pandemic, U.S. home prices in many cities flew a little too close to the sun. Now their wings are starting to melt, as interest rates have stayed higher for longer than most analysts expected.</p>
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<p>The following home price data and forecasts come from Zillow, which anticipates a nationwide housing correction of 1.0% over the next 12 months. But that correction won't be felt evenly across the country, and these 20 cities will feel more burn than most.</p>
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<p>Smaller housing markets experience more price volatility, because they don't have the same volume. Rowboats turn faster than battleships, after all.</p>
<p>Zillow projects home prices in these ten cities to fall the farthest over the next year:</p>
<p>Greenville, Mississippi: -16.7%</p>
<p>Clarksdale, Mississippi: -14.8%</p>
<p>Pecos, Texas: -13.7%</p>
<p>Cleveland, Mississippi: -13.6%</p>
<p>Bennettsville, South Carolina: -11.9%</p>
<p>Opelousas, Louisiana: -11.5%</p>
<p>Raymondville, Texas: -11.5%</p>
<p>Hobbs, New Mexico: -11.4%</p>
<p>Morgan City, Louisiana: -11.3%</p>
<p>Indianola, Mississippi: -10.8%</p>
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<p>"Many Sun Belt and Gulf Coast metros stand poised for price corrections by mid-2026," notes real estate agent and investor Jacob Naig. "What's driving all of them is a toxic slurry of pandemic era overvaluation, investor speculation and the kind of new construction that has outpaced anything local housing markets can be expected to absorb."</p>
<p>Soaring insurance costs have also spooked many homebuyers. Max Dugan-Knight, climate data scientist at Deep Sky, points to the massive flood damage and insurance claims suffered in the region over the last few years.</p>
<p>"Flood damage is enormously costly and coverage is hard to get," Dugan-Knight said. "As flood risk continues to increase, so will insurance costs, and property values will drop as a result. And it's not just restricted to coastal areas — storms are travelling further inland and dropping more water than ever before."</p>
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<p>While no major metropolitan areas are forecast for a double-digit home price crash, the higher home prices in many of them mean a steeper drop measured in dollars.</p>
<p>Homeowners (and buyers) should keep a watchful eye on these 10 larger cities:</p>
<p>New Orleans, Louisiana: -7.2%</p>
<p>San Francisco, California: -6.1%</p>
<p>Austin, Texas: -5.1%</p>
<p>San Jose, California: -4.0%</p>
<p>Honolulu, Hawaii: -3.8%</p>
<p>Denver, Colorado: -3.8%</p>
<p>Sacramento, California: -3.7%</p>
<p>San Antonio, Texas: -3.6%</p>
<p>Portland, Oregon: -3.5%</p>
<p>Washington, D.C.: -3.3%</p>
<p>Sustained high interest rates have pushed reluctant sellers to list their homes. Many don't want to surrender their low fixed-interest mortgages, and have delayed selling in hopes of falling rates. But after three years of higher interest rates, many simply can't delay moving any longer.</p>
<p>That's led to a surplus of inventory hitting the market, for a huge bump in supply. The latest housing report by Realtor.com released at the end of July shows housing inventory jumping 24.8% over the last year.</p>
<p>That says nothing of lingering economic uncertainty either. All in all, sellers can expect a tough 12 months in these metro areas, while buyers may score some rare bargains.</p>
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<p>This article originally appeared on GOBankingRates.com: 20 Cities Where Home Prices Are Expected To Crash in the Next 12 Months</p>
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