House Price Growth Slips to Slowest Pace in Nearly 13 Years, First American Reports

March 20, 2025

National house price growth slipped to its slowest pace since March 2012, according to First American’s latest Home Price Index (HPI) report.

Home prices increased 0.4% month-over-month and just 2.0% from February 2024 to February 2025. House prices nationally are now 54.8% higher compared to pre-pandemic levels (February 2020).

Slower price growth signaled that some pockets of the country are shifting toward a more buyer-friendly market, according to Mark Fleming, First American’s chief economist.

“While mortgage rates retreated in February, the softening home price growth reflects sales that went under contract earlier, including when demand softened amid mortgage rates that surpassed 7%,” Fleming said. “The good news is that slowing price growth is creating more favorable conditions for buyers in some markets, offering more potential opportunities for those looking—just in time for the spring home-buying season. However, given the recent decline in rates and the seasonality of demand, it's possible that price growth may accelerate in the coming months, particularly in markets where demand outstrips supply.”

The report tracks home price changes less than four weeks behind real time at the national, state and metropolitan (Core-Based Statistical Area) levels and includes metropolitan price tiers that segment sale transactions into starter, mid and luxury tiers.

Core-Based Statistical Areas (CBSAs) with the greatest year-over-year Increases in HPI include:

  • Pittsburgh: +7.0%
  • St. Louis: +4.6%
  • Warren, Mich.: +4.1%
  • Las Vegas: +3.9%
  • Baltimore: +3.1%

Core-Based Statistical Areas (CBSAs) with the lowest year-over-year Increases in HPI include:

  • Oakland, Calif.: -4.8%
  • Tampa, Fla.: -4.2%
  • Denver: -1.0%
  • Phoenix: -0.8%
  • San Diego: -.8%

“Sunbelt markets lead the nation in the slowest home price growth among the markets we track,” Fleming said. “Significant home building in many of those markets has increased inventory, easing price pressure. Markets where home prices are slowing, making for a more buyer-friendly conditions include Tampa, Fla. and Phoenix. In contrast, the Northeast has seen far less new construction, and where inventories remain tight, price growth follows.”


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