Home values are sliding across the country, with Zillow reporting declines in 27 states. The latest data confirms what many homeowners feared—prices are no longer climbing at the breakneck pace seen in previous years. The housing market is shifting, and sellers are feeling the pressure.
The biggest drops have been recorded in Florida, Colorado, California, Washington, and Washington, D.C., where values fell between 0.37% and 0.55% over the past month. These declines signal a broader correction, as inventory levels rise and buyers hesitate in the face of high mortgage rates and economic uncertainty. The post-pandemic housing boom is losing steam, and sellers are being forced to adjust expectations.
The numbers tell a clear story. Zillow’s data shows that home values have flattened nationwide, with appreciation slowing to just 0.2% month-over-month. This is the weakest growth recorded for this time of year since 2018, a stark contrast to the double-digit surges seen during the pandemic. Sellers are responding by cutting prices at record rates, with 23% of listings receiving price reductions in March alone.
The shift is being driven by a mismatch between supply and demand. 375,000 homes hit the market in March, a 9% increase compared to last year, but buyers are not keeping pace. Pending sales have remained flat, leaving 110,000 more homes unsold than were listed. This imbalance is pushing inventory levels higher, giving buyers more options and reducing competition.
Affordability remains a major hurdle. The typical mortgage payment now consumes 35.3% of median household income, making homeownership increasingly out of reach for many Americans. Even with price cuts, the cost of entry remains steep, with a 20% down payment averaging $72,000 on a typical home. The market is adjusting, but relief for buyers is still limited.
Sources
https://www.newsweek.com/map-shows-home-values-dropping-half-country-housing-market-shifts-2074904
https://www.zillow.com/research/march-2025-market-report-35082/
https://zillow.mediaroom.com/2025-04-17-Home-values-flatten-as-sellers-outnumber-buyers