House prices are dropping fast in several U.S. cities, as high mortgage rates, rising inventory, and waning demand push sellers to slash asking prices.

New research shows that 9 of the 10 cities with the most price cuts are in southern states, with Phoenix, North Port, Tampa, and Cape Coral leading the trend.

Colorado, Denver is the only non-Sun Belt city on the list, but it saw the sharpest year-over-year rise in housing inventory – up 65%.

Experts say buyers are now in a stronger negotiating position, while sellers face growing pressure to offer better deals.

Analysts warn that this could signal the start of a prolonged market downturn in states like Florida and Arizona.