5 East Coast Cities Where Home Prices Are Expected To See a Correction in the Next 12 Months

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Sarah Li Cain

Tue, February 17, 2026 at 4:55 AM GMT+9 3 min read

The U.S. housing market has seen some changes in the last few years, and in some places, prices may be going down more than others.

Most experts expect home prices to appreciate modestly in 2026, which could be helped by steadier demand and potentially lower mortgage rates. For instance, Realtor.com projects a 2% increase in national home prices in 2026. But national data doesn’t always reflect ones from every neighborhood.

Some data points to falling housing markets which affects roughly one in five of the largest areas, many of which are concentrated in the East Coast, especially in Florida according to reporting from CBS News.

Rather than what some may think it’s a crash, think of it as a correction, where home prices drop a bit from its peak.

Why These Markets on the East Coast?

There are several factors that could explain why cities on the East Coast are more vulnerable than others. For one, inventory may be higher in these areas as more sellers are listing their homes. The Realtor.com 2026 housing forecast projects existing home inventory will go up around 9% in 2026.

In some areas, the amount of homes for sale may even be higher than pre-pandemic levels.

There’s also price cuts. Redfin reports that around 20% of home listings have redacted their prices, and seems to be higher in areas that cluster around the East Coast. Price cuts could point to the fact that home sellers need to adjust to weaker buyer demand in their area.

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East Coast Cities Where Home Prices Fall

1. Cape Coral-Fort Myers, Florida

This area is expected to see some of the most drastic price drops in the U.S. Barron’s reports that could be around a 10.2% drop. The area experienced a big growth during the pandemic housing boom and a large number of home listings.

However, as supply goes up, demand will most likely cool down. In fact, Zillow data shows that the broader Florida market is seeing median values go down 5.3% in 2025.

2. Sarasota, Florida

The Sarasota metropolitan area may see the largest decline nationally in 2026. Like Cape Coral, this southwest Florida area also benefitted from many moving to the state around 2020, but is now seeing more homes listing, longer days on the market and even slower sales.

3. Raleigh, North Carolina

This southern city is another place where it’s forecasted to have rising inventory to the point where it will outpace buyer demand. Data from Zillow shows that the Raleigh area has seen home values go as high as 40% between 2020 and 2022, but it hasn’t been easy to maintain this growth.

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Now, year-over-year price growth has gone down to the single digits and more home listings. Still, it doesn’t look like it’ll be as drastic as cities in Florida.

4. Daytona Beach, Florida

Daytona Beach’s housing market is becoming more vulnerable to a correction because demand seems to be slowing down, which could be due to affordability challenges.

Zillow data shows that home values in this area went up around 50% between 2020 and 2022, with Realtor.com data showing that active listings have gone up year over year. There may be a hyper local price correction, since the higher home prices could be more than what many in the area could afford, leading to lower demand.

5. Charleston, South Carolina

Charleston’s data on Zillow shows that the city’s home values went up around 45% from 2020 to 2022, which is higher than its average long term growth rate. The rapid appreciation means that when the market cooled slightly in 2025, buyers have more leverage. Meaning, home prices could go down.

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This article originally appeared on GOBankingRates.com: 5 East Coast Cities Where Home Prices Are Expected To See a Correction in the Next 12 Months

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