According to CoreLogic’s March 2025 Insight report, Florida and Arizona rank highest among markets with a 70% probability of experiencing a decline. Chief Economist Selma notes that “flattening home price changes over the last six months suggest that further price deceleration is on the horizon. More importantly, the compressed monthly changes highlight a general lack of homebuying demand that continues to characterize the current housing market. While this year’s cold winter and significant natural disasters have dampened demand, falling consumer sentiment indicates that potential homebuyers are cautious about the short-term economic outlook and future inflation. However, with the spring home buying season approaching, recent improvements in mortgage rates may encourage some homebuyers to return to the market.” Despite this, the prevailing inflationary climate and job losses suggest that the market may decline further. Supporting this view is the weak demand in the short-term rental market, alongside rising costs for insurance and property taxes, as well as a lack of consumer confidence.
Florida and Arizona top the charts for markets where the risk of price decline is very high.
