Housing Markets See Sharpest Price Declines

Cotality report shows home price growth slowing to 0.9% in December 2025 as many markets face declines

Published on Feb. 9, 2026

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Home price growth has slowed to 0.9% in December 2025, but many markets are seeing only a decline, according to a new U.S. home price insights report from data research firm Cotality. The South and the West are getting hit the worst, with negative price declines the norm in markets like Florida, Texas, Colorado, and California. Factors like higher inventory levels and slowing in-migration in markets that previously saw rapid expansion are contributing to the declines, as the frantic bidding wars and double-digit price surges of recent years give way to a market where buyers and sellers must gradually realign their expectations.

Why it matters

The housing market slowdown and price declines in many popular migration destinations like Florida and Texas have significant implications for homeowners, prospective buyers, and the broader economy. Homeowners are seeing a loss of equity, while potential buyers are struggling with higher housing costs and stabilizing, but still elevated, prices. The shifts also reflect broader economic and demographic trends, as the pandemic-driven migration boom appears to be cooling.

The details

According to the Cotality report, the coolest markets with the sharpest declines in the Home Price Index (HPI) are Kahului–Wailuku, HI; Victoria, TX; Wichita Falls, TX; Napa, CA; Naples, FL; Punta Gorda, FL; Cape Coral, FL; North Port, FL; Rome, GA; and Sebastian, FL. Punta Gorda has seen the biggest equity percentage drop at -7.97%, with a median $26,624 plunge in value. The report attributes the declines to higher inventory levels and slowing in-migration in markets that previously saw rapid expansion, as well as rising home insurance costs in places like Hawaii and Napa.

  • Home price growth slowed to 0.9% in December 2025.
  • The Cotality report analyzed home price trends using 45 years of data.

The players

Cotality

A data research firm that produced the U.S. home price insights report.

Selma Hepp

The chief economist at Cotality.

Thom Malone

The principal economist at Cotality.

Michael Merrill

A real estate agent at Douglas Elliman who works in Vero Beach, Florida.

Brenden Rendo

A strategic real estate adviser at Real Estate Bees who serves Central Florida.

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What they’re saying

“We are seeing a significant departure from the rapid surges of recent years; while the upward pressure on prices remains, the momentum has moderated enough to suggest that the market is finally becoming more navigable for prospective buyers.”

— Selma Hepp, Chief Economist, Cotality (Cotality report)

“As sellers lose their leverage in this environment, they're getting more realistic in their pricing.”

— Michael Merrill, Real Estate Agent, Douglas Elliman (Realtor.com)

“The reason [Florida] homes have lost value is higher inventory, less migration to the area, and sellers overpricing the homes.”

— Brenden Rendo, Strategic Real Estate Adviser, Real Estate Bees (Realtor.com)

“The luster of Texas seems to be fading pretty quickly as prices increased these last few years. People I've spoken to have found its property taxes higher than that in California, and their commutes are becoming longer and longer. Now, people who leave California just go to Midwestern cities directly.”

— Jameson Tyler Drew, Los Angeles Real Estate Investor (Realtor.com)

“Hawaii's insurance costs have skyrocketed in the wake of the 2023 fires, and Napa is the same story, with most of the county being classified as very high wildfire risk. The decline in prices is necessary to compensate the buyer for the [rising] insurance costs, since the attractiveness of the areas has not changed otherwise.”

— Thom Malone, Principal Economist, Cotality (Realtor.com)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This housing market slowdown and price declines in many popular migration destinations like Florida and Texas highlight the broader economic and demographic shifts underway, as the pandemic-driven migration boom appears to be cooling. Homeowners are seeing a loss of equity, while potential buyers continue to struggle with higher housing costs, even as price growth moderates.