National House Price Growth Slips to Slowest Pace in Nearly 13 Years

—Slower price growth signals that some pockets of the country are shifting toward a more buyer-friendly market, says Chief Economist Mark Fleming—

First American Data & Analytics, a leading national provider of property-centric information, risk management and valuation solutions and a division of First American Financial Corporation (NYSE: FAF), today released its February 2025 Home Price Index (HPI) report. The report tracks home price changes less than four weeks behind real time at the national, state and metropolitan (Core-Based Statistical Area) levels and includes metropolitan price tiers that segment sale transactions into starter, mid and luxury tiers. The full report can be found here.

February¹ Home Price Index

Chief Economist National HPI Analysis:

“National house price growth slipped to its slowest pace since March 2012, amid ongoing affordability constraints and rising inventory,” said Mark Fleming, chief economist at First American. “While mortgage rates retreated in February, the softening home price growth reflects sales that went under contract earlier, including when demand softened amid mortgage rates that surpassed 7 percent. The good news is that slowing price growth is creating more favorable conditions for buyers in some markets, offering more potential opportunities for those looking – just in time for the spring home-buying season. However, given the recent decline in rates and the seasonality of demand, it's possible that price growth may accelerate in the coming months, particularly in markets where demand outstrips supply.”

Year-Over-Year Price-Tier Data for the Atlanta-Sandy Springs-Alpharetta Metro Area: February 2024 to February 2025

The First American Data & Analytics HPI segments home price changes at the metropolitan level into three price tiers based on local market sales data: starter tier, which represents home sales prices at the bottom third of the market price distribution; mid-tier, which represents home sales prices in the middle third of the market price distribution; and the luxury tier, which represents home sales prices in the top third of the market price distribution.

“Sunbelt markets lead the nation in the slowest home price growth among the markets we track,” said Fleming. “Significant home building in many of those markets has increased inventory, easing price pressure. Markets where home prices are slowing, making for a more buyer-friendly conditions include Tampa, Fla. and Phoenix. In contrast, the Northeast has seen far less new construction, and where inventories remain tight, price growth follows.”

February 2025 First American Data & Analytics Price Tier HPI Highlights²

Additional February 2025 First American Data & Analytics HPI Highlights

HPI data for all 50 states and the largest 30 CBSAs by population is available here.

Visit the First American Economic Center for more research on housing market dynamics.

Next Release

The next release of the First American Data & Analytics House Price Index will take place the week of April 21, 2025.

First American Data & Analytics HPI Methodology

The First American Data & Analytics HPI report measures single-family home prices, including distressed sales, with indices updated monthly beginning in 1980 through the month of the current report. HPI data is provided at the national, state and CBSA levels and includes preliminary index estimates for the month prior to the report (i.e. the preliminary result of July transactions is reported in August). The most recent index results are subject to revision as data from more transactions become available.

The HPI uses a repeat-sales methodology, which measures price changes for the same property over time using more than 46 million paired transactions to generate the indices. In non-disclosure states, the HPI utilizes a combination of public sales records, MLS sold and active listings, and appraisal data to estimate house prices. This comprehensive approach is particularly effective in areas where there is limited availability of accurate sale prices, such as non-disclosure states. Property type, price and location data are used to create more refined market segment indices. Real Estate-Owned transactions are not included.

Disclaimer

Opinions, estimates, forecasts and other views contained in this page are those of First American’s Chief Economist, do not necessarily represent the views of First American or its management, should not be construed as indicating First American’s business prospects or expected results, and are subject to change without notice. Although the First American Economics team attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. © 2025 by First American. Information from this page may be used with proper attribution.

About First American Data & Analytics

First American Data & Analytics, a division of First American Financial Corporation, is a national provider of property-centric information, risk management and valuation solutions. First American maintains and curates the industry’s largest property and ownership dataset that includes more than 8.6 billion document images. Its major platforms and products include: DataTree^®, FraudGuard^®, RegsData^®, First American TaxSource™ and ACI^®. Find out more about how First American Data & Analytics powers the real estate, mortgage and title settlement services industries with advanced decisioning solutions at www.FirstAmDNA.com.

About First American

First American Financial Corporation (NYSE: FAF) is a premier provider of title, settlement and risk solutions for real estate transactions. With its combination of financial strength and stability built over more than 135 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $6.1 billion in 2024, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2024, First American was named one of the 100 Best Companies to Work For by Great Place to Work^® and Fortune Magazine for the ninth consecutive year, and named one of the 100 Best Workplaces for Innovators by Fast Company for the second consecutive year. More information about the company can be found at www.firstam.com.

¹ The most recent index results are subject to revision as data from more transactions become available.

² Note: Nassau-County-Suffolk County, NY is excluded from this month’s report due to data disruptions.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250318649188/en/