🏠 U.S. Home Price Growth Slows to Lowest Level in Nearly Two Years
U.S. home prices have decelerated sharply, rising just 2.7% year-over-year in April 2025, according to the S&P CoreLogic Case-Shiller National Home Price Index. This marks the slowest pace of appreciation in nearly two years, as high mortgage rates and growing housing supply begin to cool the market.
🔑 Key Trends in the U.S. Housing Market (2025)
📉 Slower Price Appreciation
Home price growth has lost momentum due to persistent mortgage rates hovering above 6%, making homeownership less affordable for many buyers.
🏘️ Housing Inventory Increasing
Listings have surged over 20% compared to last year, giving buyers more options and pressuring sellers to adjust pricing expectations.
🛑 Weak Sales Activity
Existing-home sales rose slightly in May, but remained near the lowest levels since 2009, reflecting soft demand despite more homes being available.
🌍 Regional Price Divergence
Markets like Florida and Texas—which experienced rapid pandemic-era booms—are now seeing price declines. In contrast, areas in the Northeast and Midwest remain more stable, with modest price increases.
📉 First Monthly Decline Since 2023
Home prices slipped 0.3% month-over-month in March, the first monthly drop in over two years, signaling a potential turning point in the real estate cycle.
🔮 2025 Real Estate Outlook
As the housing market shifts toward a buyer’s market, nearly 1 in 4 listings on Zillow saw price reductions in May—the highest rate for that month since 2018.
Experts warn that without a drop in interest rates or a surge in demand, U.S. home prices may remain flat or decline slightly for the rest of the year. However, a sharp correction is not expected unless the broader economy weakens significantly.
