It’s the most significant housing market drop seen in years.

Zillow just released a home sales forecast predicting home listing prices will drop in a major way.

According to Zillow, we could also see about a 3.3% increase in home sales from last year.

Colonial Revival House exterior

Credit:John Bessler

The best metro areas include Miami, New Orleans, Jacksonville, Tampa, and Memphis.

Alternatively, Zillow still expects prices to continue to rise in the Northeast.

Zillows fullHome Value and Home Sales Forecastfor 2025 is available on its website.