U.S. Home Price Insights – May 2025
U.S. home price growth continued to decelerate in March 2025, with year-over-year gains dipping to 2.5%, down from 2.9% in February. While lower mortgage rates in March spurred a 12% increase in pending sales activity compared to the previous year, broader economic uncertainty and affordability concerns have tempered the market’s momentum. Notably, Alaska and West Virginia emerged among the top five states for annual price growth, reflecting regional disparities in housing trends .
The Northeast continues to exhibit robust price appreciation, with states like Rhode Island, Connecticut, and New Jersey recording year-over-year growth rates at or above 7%. Conversely, western states such as Utah and Idaho experienced price declines of 2.1% and 2.2%, respectively. In the South, Georgia reached new price records, while Florida saw a slight overall decline of 0.3%, with specific markets like Winter Haven identified as high-risk areas. The interplay of rising inventories, elevated mortgage rates, and non-mortgage costs has particularly impacted markets in Florida and Texas, where cumulative price increases since the pandemic have averaged between 70% and 90%, exacerbating affordability challenges .
