U.S. House Price Growth Continues Slowdown

Even as house prices have reached record highs, price growth in the U.S. slowed to its lowest level since 2012. That's according to the April 2025 Home Price Index (HPI) report from First American Data & Analytics, a division of First American Financial Corporation that provides property-centric information, risk management, and valuation solutions.

From March to April 2025, the report found house prices rose by 0.4% on a non-seasonally adjusted basis. Year-over-year and on that same basis, prices were up by 2.0%.

Even so, home prices nationally are now 57.2% higher compared to pre-pandemic levels in February 2020, First American Data reported.

“House prices nationally reached another record high in April, but the annual growth rate has slowed to its lowest level since 2012, underscoring the ongoing rebalancing in the market,” said Mark Fleming, chief economist at First American. He noted that persistently high mortgage rates have tempered demand, while increased inventory has boosted supply, and those factors have brought down price appreciation.

“Although affordability remains a challenge,” Fleming added, the slowed price growth “is encouraging” for potential homebuyers because it boosts any purchasing power growth they may see from income increases.

The report segments home price changes at the metropolitan level into three price tiers: starter tier, mid-tier, and luxury tier. And there’s always a localized story to tell when it comes to housing. 

For the starter home tier, First American Data found the strongest price growth mainly in the Northeast or Midwest, including:

• Pittsburgh, where these homes’ prices were up by 7.6% year-over-year;
• Baltimore, where they were up by 5.7% over the same period;
• St. Louis, where they were up by 4.9%;
• Cambridge, Mass., where they were up by 4.7%; and
• Warren, Mich., where these homes’ prices grew by 3.3%.

These markets “are attractive to potential first-time home buyers due to their relative affordability,” Fleming noted, also pointing out that home building there has lagged somewhat. The combination spells higher demand and more limited supply, “fueling strong house price appreciation."

"The annual growth rate has slowed to its lowest level since 2012, underscoring the ongoing rebalancing in the market.” —Mark Fleming, chief economist, First American Financial Corp.

Overall, in those same markets:

• Pittsburgh saw a 5.0% year-over-year increase in its home price index;
• Cambridge, Mass., had a 4.0% increase;
• Warren, Mich., saw a 3.3% increase;
• Baltimore also had a 3.3% increase; and
• St. Louis had a 3.1% increase.

Meanwhile, some core-based statistical areas, or CBSAs, saw HPI declines year-over-year. Those included:  

• Oakland, Calif, which saw a year-over-year home price index decrease of 7.6%;
• Tampa, Fla., which had a decrease of 4.8%;
• San Diego, which saw a decrease of 2.1%;
• Denver, which had a decrease of 1.8%; and
• Dallas, which had a year-over-year home price index decrease of 1.2%.