Realtors Predict House Prices Will Plummet in These 10 Popular Southern Towns

Southern towns have a lot to offer residents — including tons of charm, access to beaches, and nearly year-round sunshine — which is why the region is known for having one of the hottest real estate markets in the country.

But the high-demand and low supply of the southern half of the U.S. has also made it harder to purchase homes in the more popular areas of this region because sellers can basically name their price when they're listing their house for sale, leading to eye watering price tags that make it hard for hopeful homeowners to get their foot in the door.

Fortunately, these eight real estate agents predict that things are ready to change in certain areas, as they believe that at least 10 southern towns are about to see prices plummet in the coming months.

If you've been on the fence about buying, now may be the perfect time to make some money moves so you can take advantage of this changing market by buying a home in one of these red hot areas.

With picturesque views, easy access to shopping, and a wealth of casinos where you can do everything from gambling to watching a show, it's no wonder that home prices in Lake Charles have climbed so high over the years.

Fortunately, Adam Chahl, real estate agent with Oakwyn Realty, notes that the area has seen a bit of a price drop recently, and that's something he expects will continue to happen as more and more people are relocating to find a lower cost of living.

"Insurance, in particular, has become a major barrier," Chahl says of the higher than average premiums homeowners pay in this area.

But, if you're not worried about setting a bit extra aside each month to cover those additional expenses, now may be a great time to buy since sale prices have dropped 3.8% over the past year.

Similar to Lake Charles, Jacksonville has a lot to offer residents, including access to both beaches and urban city centers. And, much like Lake Charles, Jacksonville has also seen its affordability rise thanks to a .4% drop in sale prices over the past year.

Seth Williams, real estate agent and investment expert with Reference Real Estate, believes that this is due in no small part to increased costs in the area. "Due to this, the local real estate market has seen a significant slowdown," he says.

That slowdown has left houses sitting on the market longer than normal — many properties are sitting for an average of 60 days — which will give potential homeowners a bit more leverage to negotiate for a lower price.

Robert Washington, founder and broker with Savvy Buyers Realty, says that the pricing changes have been coming for some time now in the Tampa area.

"Markets that experienced huge price increases from 2020-2023, like Florida and Texas, have been the softest over the last six months," he says. "We are simply seeing the market take a breather and come back to reality. I feel like our market will bounce back in 2025."

That means that you may not want to hold off too long before making a move to Tampa, considering prices could start to creep back up in the new year.

Chahl says that Tort Myers is another Florida city to watch.

This area has traditionally been a hotspot for retirees, and now seniors hoping to move to the region may be able to do so at a lower price than before. In fact, it looks like housing prices have dropped 5.4% over the past year.

Considering that the average home value clocks in at around $347,358, hopeful homebuyers may be able to save a huge chunk of change when they relocate here.

Alexei Morgado, real estate agent and founder of Lexawise, notes that property values have been in flux in this highly sought after Texas city.

That's because the Dallas zip code comes along with loads of perks, including mild winters, numerous sports teams, 38 colleges and universities, 22 Fortune 500 companies, and plenty of cultural activities.

In fact, the area has seen a .5% drop over the past year, and average home values are hovering around $306,276. If the downward trend continues, buyers may finally be able to afford to get their foot into the door in this popular city.

Austin has seen a monthly drop in real estate prices throughout 2024, which actually saw a record high dip of 1% during a particularly slow month. All of those little losses have added up to a bit total, since the city's average value is down 3.5% since last year.

Brad Pauly, broker and owner of Pauly Presley Realty, attributes this market slowdown to a correction from excessive highs the areas saw during the pandemic, thanks to the rise in telework positions that allowed people to clock in from around the country.

Apparently a lot of those remote workers flocked to the Lone Star State when this happened, lured by lack of income taxes and lower cost of living. Now that many people are returning to work, it sounds like things are starting to even out in the region.

"The Austin market was on fire in the COVID years," Pauly says. "In the middle of 2023, things started to come back down to earth."

Not only that, but Pauly also attributes some of the pullback to shortcomings in the tech job market, as well. "Austin goes as tech goes," he continues, noting that the area is often referred to as "Austin Silicon Hills."

"Tech went from hiring like crazy during the pandemic to laying off last year, which is another reason for the dip in home prices." For those not impacted by tech's downsizing, this drop may pose an opportunity to get a more reasonable price on a home in the state's capital.

"The bottom hasn't fallen out of the Atlanta market," notes Ashton Ernst, founder of Bolst, Inc., a real estate brokerage and senior partner with the Justin Landis Group. "But in some pockets of the city with high investor activity and inventory, prices are leveling out."

"We're seeing more seasonality and less buyer demand — even in suburban areas that would have sold quickly in the spring," she continues, noting that the average time on the market is double, and in some cases triple, what it has been in the last six months.

"It's still 60 days or less, so it's not extreme, but those averages have ticked up."

What's the reason behind Atlanta's pricing dip? Ernst attributes the drop to a combination of a few things, including high interest rates, seasonality, over inflated property values, and more.

The prices in The Alamo City have been retreating from their pandemic-era highs thanks to an ongoing increase in development in the area.

According to Levi Rodgers, real estate broker and owner of the VA Loan Network, that's due in no small part to builders who have been steadily putting up new homes in and around the city over the last few years, which has created higher-than-average inventory levels.

"With more properties than buyers at the moment, sellers are becoming more flexible, creating a prime opportunity for retirees looking to lock in a great price."

This small town on the outskirts of San Antonio offers the best of small town living while also providing modern amenities, which is one of the reasons why it's been so popular over the years.

But, thanks to a rise in newly built properties, Daniel Cabrera, owner and founder of Sell My House Fast San Antonio, Texas, says that the inventory is finally rising to meet demand, which is making it easier for people to be able to afford a home in the area.

That's great news for retirees, since Cabrera says that this group is particularly poised to be able to benefit from the combination of plummeting prices and increased housing stock, since homebuyers can often get more bang for their buck thanks to how big the new homes are.

"Houses here often represent better value per square foot than one might find in large metro areas."

For buyers who want a great deal on a home and don't mind living on the outskirts of a major area rather than in an urban center, New Braunfels may be a good option.

This suburb of Ft. Lauderdale offers numerous homes under $200,000, which is no small feat in today's real estate landscape. 

Most of these are condos, so retirees who want the extra amenities and lack of homeowner responsibilities involved in condo living may find Lauderdale Lakes the perfect place to call home.

Morgado says that the proximity of Lauderdale Lakes to Fort Lauderdale provides an especially large draw, which is why this spot has been popular for years.

"Also, the town has a varied population with lots of cultural and sporting events, which makes it particularly attractive for retirees who have active lifestyles," he continues. 

"Lauderdale Lakes is not as prone to natural disaster damage and boasts growing inventories, making this an optimum time for retirees to stake claims in homes at a favorable price."

Despite the skyrocketing prices of homes around the country, it seems like there are a few popular southern towns where you can still get a good deal. That's especially true if you're a retiree looking to maximize your retirement savings in low-cost-of-living areas.

But, that doesn't mean you should wait until you're leaving the workforce to put a bid in on a home in one of these popular southern towns. 

While the prices may be temporarily down, the things that made them so popular in the first place could always drive them back up again, so it's best not to wait too long if you want to take advantage of these likely temporary deals.