Housing slump spreads across US as prices now falling in MOST cities – sparking fears of

Home prices are now falling in nearly three out of every five major US housing markets, according to new data that suggests the long-running housing boom may be running out of steam.

A report from Realtor.com found that 29 of the 50 largest metro areas recorded price drops in February, while just 17 saw prices rise and four were unchanged.

The figures point to a housing market that is starting to lose momentum after years of soaring prices, as more homes come up for sale and buyers grow cautious.

Across the country, the typical asking price for a home fell 2.1 percent compared with a year ago, dropping to $403,450.

Homes are also taking longer to sell. The average property now spends 70 days on the market, four days longer than this time last year.

Meanwhile the number of homes for sale continues to rise. Listings were 7.9 percent higher than a year ago, marking the 28th straight month that the supply of homes on the market has grown.

Even so, the total number of homes available is still about 17 percent lower than before the pandemic, showing how tight the market remains despite the recent shift.

The steepest price drops are being seen in several cities that boomed during the pandemic housing frenzy.

Home prices are now falling in nearly three out of every five major US housing markets

Austin recorded the biggest fall, with prices down 8.8 percent, followed closely by Memphis, where they dropped 8.7 percent.

Major coastal markets are also seeing notable declines, including Los Angeles, down 5.8 percent, San Diego, down 5.3 percent, and Washington, DC, down 5.2 percent.

Other large cities seeing significant falls include Boston (-4.8 percent), Portland (-4.3 percent) and Phoenix (-3.9 percent).

The trend suggests some of the places where prices surged the most during the pandemic are now seeing the sharpest pullback as the market adjusts.

At the other end of the spectrum, a number of cities – mostly in the Midwest – are still seeing modest price growth.

Cincinnati recorded the strongest increase at 4.3 percent, followed by Kansas City and Pittsburgh, both up 4.1 percent.

Other markets still posting gains include San Jose (3.5 percent), Indianapolis (3.3 percent) and Hartford (2.6 percent).

The pattern highlights a widening divide in the housing market, with more affordable inland cities holding up better while many expensive coastal and Sun Belt markets slip.

Austin, Texas (pictured) recorded the biggest fall , with prices down 8.8 percent

There has been a ‘ghosting’ trend creeping up on the housing market lately, as more buyers than ever pull out of deals last minute

Despite lower prices, there are some signs that buyers are returning.

The number of homes going under contract rose 4.2 percent from a year ago, the strongest increase in more than a year.

This indicates a 15-month high in contract activity – partly due to mortgage rates being at their lowest since 2022.

However, there has been a ‘ghosting’ trend creeping up on the housing market lately, as more buyers than ever pull out of deals last minute. 

Redfin’s data found that nearly 40,000 home-sale agreements were canceled in January – that’s equivalent to almost 14 percent of all the houses that went under contract. 

Worst yet, last month’s cancellation rate was up a staggering 13 percent from just a year earlier, and represented the highest January share in almost a decade. 

Another worrying sign for the housing market is a spike in foreclosure activity.Attom’s latest data revealed that US foreclosure activity jumped again in January 2026, with a total of 40,534 properties facing foreclosure filings – a 32 percent increase from the same time last year. 

While the total was slightly lower than December, January still marked the 11th straight month of rising year-on-year foreclosure activity – a clear sign the pressure is building, not easing.