Housing prices fell in 39 of the 129 largest U.S. urban markets in early 2026, with Cape Coral-Fort Myers, Florida, seeing the steepest 9% drop. Rising homeowners’ insurance costs, especially in Florida where premiums average $8,292 and can reach $22,436, are driving many to sell. Texas cities like Austin also face declines, while Detroit's home values rose 17%. Mortgage rates near 6.3% suggest continued price adjustments as sellers lower expectations.