F
ive US metro areas are at high risk of a housing market crash in 2025, with three located in Florida and two in Arizona. A study by CoreLogic found that Winter Haven, Tampa, and West Palm Beach are among the top five markets most likely to see home price declines next year, with Phoenix and Tucson also making the list. All five areas have over a 70% chance of experiencing a drop in prices.

    Florida's housing market is facing a downturn due to declining demand, rising mortgage rates, and increasing HOA fees and property insurance costs. Many homes in Florida are sitting on the market without selling, forcing sellers to lower their prices. For example, Tampa saw a 1.6% drop in sales between October 2024 and January 2025, while Winter Haven and West Palm Beach experienced similar declines.

    CoreLogic economists predict that price growth will continue to slow in Florida, but lower mortgage rates could encourage potential buyers to enter the market. In West Palm Beach, luxury developments and business investments are helping to boost home sales. However, other parts of Florida, such as New Smyrna Beach, Palm Coast, Panama City, and Gainesville, have a high inventory of homes sitting on the market for over 90 days.

    The housing market is also becoming increasingly divided across different regions in America. In some areas, like Wyckoff, New Jersey, modest homes are selling quickly with multiple offers, while in other areas, such as Miami, luxury homes are struggling to sell despite price cuts. CoreLogic chief economist Selma Hepp notes that falling consumer sentiment and future inflation concerns may be deterring potential homebuyers from entering the market.