A report from Realtor.com shows that many areas that experienced substantial growth during the pandemic are now posting some of the country’s steepest price reductions. Most of these areas are located in the Southern and Western U.S.

“The unifying thread among these states is they have all seen a significant influx of buyers in the last 2.5 years,” says George Ratiu, senior economist and manager of economic research for Realtor.com. “These new buyers drove up local market prices, and in some cases, even beyond local residents’ ability to compete.”

Realtor.com analyzed the percentage of home listings that have undergone price reductions in states across the country. Arizona leads the list, where 40% of listed homes had a price reduction in October 2022. Also on the list are Idaho, Nevada, Utah, Colorado, Washington, Texas, California, South Carolina and Georgia, all of which are experiencing price reductions at higher rates than the U.S. average.