In Jacksonville, 28 percent of homes have reduced prices. The city's inventory is up 35 percent, reaching 9,676 listings, with a median list price of $399,995 and an average of 57 days on the market.

A recent report found that house prices are now falling in 110 of the 300 largest metro areas, up from only 31 in January.

Those with equity in a home can trade up more easily, while many first-time homebuyers are still stuck on the sidelines.