- Annual house price appreciation slows to its lowest rate since 2012, according to First American Data & Analytics.
- National house prices stabilized in May 2025, with a year-over-year increase of 2.1%.
- House price growth in some Northeast and Midwest markets outpaces the national rate.
First American Data & Analytics has reported that the annual house price appreciation reached its slowest pace since March 2012, with a modest increase of 2.1% from May 2024 to May 2025. Despite this deceleration, the national house prices stabilized in May 2025, offering a reprieve from the previous 16 months of continuous slowdown.
Chief Economist Mark Fleming noted that the rise in mortgage rates during April and May impacted affordability, curbing demand as the supply of houses increased. However, he highlighted the positive impact of slowing national price appreciation on household incomes, which helps offset some of the pressures from still-high mortgage rates, benefiting potential homebuyers.
Local markets in the Northeast and Midwest experienced more significant price growth, exceeding the national rate. Cambridge, Mass., saw an increase of 9.5% in the starter tier, while Pittsburgh recorded a similar trend with an 8.6% rise. In contrast, Southern and Western markets like Tampa, Fla., saw declines, but these were viewed as minor compared to the significant equity gains during the pandemic boom.
Core-Based Statistical Areas (CBSAs) showing substantial year-over-year increases include Cambridge, Mass. (+6.0%), Pittsburgh (+5.7%), and Cincinnati (+5.6%). Conversely, regions like Oakland, Calif. (-7.4%) and Tampa, Fla. (-4.1%) experienced declines in house prices.
The next release of the First American Data & Analytics House Price Index is scheduled for the week of July 14, 2025. More detailed insights and updates can be found at First American’s website.
First American Financial Corporation (FAF, Financial), known for its pioneering role in property-centric information and valuation solutions, continues to provide comprehensive housing market insights via its robust data analytics and proprietary technologies.
