- The median home price increased by 2.2% year-over-year to $380,000 in March 2025.
- Cleveland led the market with a 10% price gain, followed by Chicago, New York, and Pittsburgh.
- The report suggests a shift towards a buyer's market, aided by increased housing inventory and lower mortgage rates.
The housing market continues to show signs of slowing growth in home price appreciation, according to the March 2025 report by Homes.com, a CoStar Group (CSGP, Financial) company. The median home price rose by 2.2% compared to March of the previous year, increasing to $380,000 from $372,000. This marks the third consecutive month of decelerating price growth, following increases of 2.7% in February and 3.6% in January.
Price appreciation has sustained for 21 straight months, reaching a peak of 5.6% in December 2024. Despite the overall slowdown, the Northeast and Midwest regions exhibited robust growth, with Cleveland topping the charts with a price surge exceeding 10%, accompanied by notable increases in Chicago, New York, and Pittsburgh.
Conversely, four housing markets experienced price declines in March, with Orlando, Jacksonville, San Francisco, and Tampa noted as the areas with downward pricing trends. Florida emerged as a key contributor, accounting for three of the four declining markets.
The market landscape shows indications of transitioning from a seller's to a buyer's market. This is facilitated by an increase in available housing inventory and a modest reduction in mortgage rates throughout March, enhancing affordability and providing buyers with greater negotiating power.
CoStar Group (CSGP, Financial) continues to play a pivotal role in providing critical real estate data and insights, underpinning the evolving trends within the housing sector as demonstrated in this report from Homes.com.
