- National house price index shows lowest annual growth rate since 2012, increasing just 2.0% from April 2024 to April 2025.
- Pittsburgh leads starter tier home price growth at a 7.6% increase year-over-year, despite broader slowing trends.
- Significant house price drops noted in Oakland, Tampa, and San Diego, with declines ranging from 7.6% to 2.1%.
First American Data & Analytics has released its April 2025 Home Price Index (HPI), unearthing signs of cooling in the national housing market. The index, a robust measure of home price changes across various tiers and locations, reveals a 0.4% month-over-month and 2.0% year-over-year increase in house prices as of April 2025.
Mark Fleming, the Chief Economist at First American, attributes the deceleration to high mortgage rates and increased inventory levels. While house prices nationally set another record high, the annual growth rate is the slowest reported since 2012. This apparent rebalancing follows two years of unsustainable price surges during the pandemic. Fleming notes that slower price appreciation could be beneficial for potential home buyers who are contending with affordability challenges.
Within local markets, Pittsburgh, along with Baltimore and St. Louis, exhibits robust growth in the starter home price tier, driven by demand outpacing supply. Pittsburgh recorded a 7.6% increase in starter home prices year-over-year. Conversely, metropolitan areas such as Oakland, California (-7.6%), and Tampa, Florida (-4.8%) experienced notable declines, reflecting the broader trend of market normalization.
Looking ahead, First American Data & Analytics plans to release its next HPI report in mid-June 2025, offering further insights into the evolving housing market dynamics.
