- Houston-The Woodlands-Sugar Land home prices rose 1.3% year-over-year in March 2025.
- National house price growth fell to 1.8% year-over-year, the lowest in 13 years.
- First American (FAF, Financial) reports varied changes in home prices across different price tiers and regions.
In a noteworthy development, the latest data from First American Data & Analytics shows that the Houston-The Woodlands-Sugar Land metropolitan area's home prices increased by 1.3% from March 2024 to March 2025. Month-over-month, there was a modest rise of 0.5%. These figures form part of the broader national trend, which recorded a 1.8% year-over-year increase in home prices, marking the lowest growth rate since 2012.
Chief Economist Mark Fleming of First American highlighted the impact of strained affordability and increased economic uncertainty on national house price growth. Despite these challenges, there is a silver lining with household income growth outpacing house price appreciation, which could potentially lower the affordability gap, assuming mortgage rates remain stable.
Delving deeper into price tiers within the Houston-The Woodlands-Sugar Land area, the report reveals that the starter tier experienced a 0.5% increase, mid-tier homes saw a 2.0% rise, while the luxury tier surged by 2.7%. These shifts underscore the varied dynamics playing out across different segments of the market.
The national scene presented mixed outcomes, with the Northeast and Midwest seeing stronger price appreciation due to lagging inventory, while areas in the South and West witnessed price declines amidst rising inventory. For instance, cities like Denver and Orlando, Florida, recorded some of the steepest annual inventory increases, resulting in notable price drops.
First American Financial Corporation (FAF, Financial), the entity behind this comprehensive data, continues to leverage its extensive property datasets to provide crucial insights into market dynamics, supporting the real estate sector with advanced decision-making tools. Investors and stakeholders can anticipate the next release of this valuable data in the week of May 19, 2025.
