House Price Appreciation by State and Metro Area: Third Quarter 2025

2025-12-03T11:16:53-06:00

House prices continued to rise in the third quarter of 2025, though the pace of growth slowed as elevated mortgage rates, affordability challenges, and persistent economic uncertainty weighed on consumer demand. After several years of rapid growth, Hawaii and 38 metro areas saw house price declines this quarter, highlighting significant regional variations in market conditions. Nationally, according to the quarterly all-transactions House Price Index (HPI) released by the Federal Housing Finance Agency (FHFA), U.S. house prices rose 3.3% in the third quarter of 2025, compared to the same period in 2024. This represents the slowest year-over-year price appreciation since 2013, indicating a cooling in the housing market following a decade of robust price growth. The FHFA’s all-transactions HPI tracks average price changes based on repeat sales and refinancings of the same single-family properties. It offers insights not only at the national level but also across states and metropolitan areas. Between the third quarter of 2024 and the third quarter of 2025, 48 states and the District of Columbia experienced positive year-over-year (YoY) house price appreciation, with gains ranging from 0.6% to 6.8%. Hawaii was the only state to record a decline, while Florida posted no growth. New York led all states with a 6.8% gain, followed by Connecticut with a 6.5% gain and Illinois with a 6.2% gain. On the opposite end, Colorado posted the lowest house price appreciation at 0.6%. Notably, out of all 50 states and the District of Columbia, 29 states exceeded the national YoY growth rate of 3.3%. However, on a quarterly basis, home price appreciation decelerated in 45 states compared to the second quarter of 2025, highlighting a broad-based deceleration in the housing market. House price growth also varied widely across U.S. metro areas, ranging from a 7.8% decline to a 16.0% increase year-over-year. Punta Gorda, FL recorded the steepest drop, while Farmington, NM posted the strongest gains over the previous four quarters. In the third quarter of 2025, 34 metro areas, in reddish color on the map above, experienced negative house price growth, while 351 metro areas posted increases. Since the onset of the COVID-19 pandemic, house prices have surged nationally. Between the first quarter of 2020 and the third quarter of 2025, house prices climbed 54.9% nationwide, with more than half of metro areas exceeding this rate. However, 226 metro areas have seen varying degrees of decline from their post-COVID peaks, ranging from -0.1% to -12.7%. The map below presents the top ten and bottom ten markets for house price appreciation over the past five years. Among all the metro areas, house price appreciation ranged from 18.3% to 88.4%. Knoxville, TN topped the list with the highest house price appreciation, while Odessa, TX posted the lowest appreciation, ending Lake Charles, LA’s five-quarter run at the bottom.

House Price Appreciation by State and Metro Area: Third Quarter 20252025-12-03T11:16:53-06:00

Where Renters and Owners Face the Highest Cost Burdens

2025-11-24T11:16:25-06:00

The housing affordability crisis continues to disproportionately affect renters, with more than half of renter households experiencing high-cost burdens — i.e., paying 30% or more of their income on rent and utilities. At the same time, current home owners, buoyed by significant home equity gains and locked in by below-market mortgage rates, are in a more advantageous financial position to weather the growing affordability crisis. According to the latest 2024 American Community Survey (ACS), more than half of all renter households (50.3%), or 23.2 million, are burdened by housing costs. Among home owners, this share is less than a quarter (24.3%) representing 21 million households. As a result, states and counties with higher shares of renters in their housing markets are more likely to have higher overall shares of households with cost burdens. Geographically, Florida, Nevada, and California have the largest concentration of cost-burdened renters. In Florida, 60% of all renters pay more than 30% of their income on rent and utilities. In Nevada, the share is 57%, and in California, 55% of renters experience housing cost burdens. Even in states with comparatively low renter cost-burden rates—such as South Dakota, Alaska, and North Dakota—more than one-third of renters still spend 30% or more of their income on housing. For home owners, cost-burden rates are generally lower, but the geographic pattern mirrors that of renters. California, Florida, and several Northeastern states report the highest shares of cost-burdened home owners. California faces the most severe affordability challenges, with one in three owners paying more than 30% of their income for housing. Florida and Hawaii follow closely, with 31% of existing home owners struggling to afford their homes. At the opposite end of the spectrum, nine states in the Midwest and South report that fewer than 20% of homeowners are cost-burdened. West Virginia and North Dakota have the lowest rates, at just 16%.

Where Renters and Owners Face the Highest Cost Burdens2025-11-24T11:16:25-06:00

Existing Home Sales Rise in October

2025-11-20T12:17:28-06:00

Existing home sales rose to an eight-month high in October as buyers took advantage of lower mortgage rates, according to the National Association of Realtors (NAR). Resale inventory improved from a year ago but remained below pre-pandemic levels. Relatively tight supply continued to push home prices higher and challenge housing affordability. These affordability pressures vary by region, with first-time buyers in the Northeast facing limited inventory, while buyers in the West struggle with elevated home prices. Mortgage rates hovered between 6.5% and 7% earlier this year due to economic and tariff uncertainty. However, with the Fed resuming rate cuts in September, mortgage rates have fallen gradually. As of October 30th, the average mortgage rate decreased to 6.17%, the lowest in over a year. With additional rate cuts expected in coming months, lower mortgage rates and improved inventory should bring more buyers and sellers into the market. Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 1.2% to a seasonally adjusted annual rate of 4.10 million in October, the highest level since February. On a year-over-year basis, sales were 1.7% higher than a year ago. The existing home inventory level was 1.52 million units in October, down 0.7% from September but up 10.9% from a year ago. At the current sales rate, October unsold inventory sits at a 4.4-months’ supply, down from 4.5-months in September but up from 4.1-months in October 2024. Inventory between 4.5 to 6 months’ supply is generally considered a balanced market. Homes stayed on the market for a median of 34 days in October, up from 33 days last month and 29 days in October 2024. The first-time buyer share was 32% in October, up from 30% in September and 27% from a year ago. The October all-cash sales share was 29% of transactions, down from 30% in September but up from 27% a year ago. All-cash buyers are less affected by changes in interest rates. The October median sales price of all existing homes was $415,200, up 2.1% from last year. This marks the 28th consecutive month of year-over-year increases. The median condominium/co-op price in October was up 0.9% from a year ago at $363,700.  Recent gains for home inventory will put downward pressure on resale home prices in most markets in 2025. Existing home sales in October were mixed across the four major regions. Sales rose in the Midwest (5.3%) and South (0.5%), fell in the West (-1.3%), and remained unchanged in the Northeast. On a year-over-year basis, sales were up in the Northeast (4.3%), South (2.8%) and Midwest (2.1%), while down in the West (-2.6%). The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI remained unchanged at 74.8 in September, suggesting job market concerns kept buyers on the sideline despite mortgage rates near one-year lows. On a year-over-year basis, pending sales were 0.9% lower than a year ago, according to the National Association of Realtors’ data.

Existing Home Sales Rise in October2025-11-20T12:17:28-06:00

Home Price Growth Slows

2025-10-28T11:24:29-05:00

Home prices in August grew at the lowest annual rate in over two years, according to the recent release of the S&P Cotality Case-Shiller Home Price Index (seasonally adjusted – SA). Home prices grew at an annual rate of 1.51%, almost half the rate of inflation. This is well below the recent highs of around 6.5% at the beginning of 2024. On a monthly basis, the index posted a modest increase from July, following five consecutive months of decline. In addition to tracking national home price changes, the S&P Cotality CoreLogic Index (SA) also reports home price indexes across 20 major metro areas. Compared to last year, 11 of 20 metro areas reported a home price increase. There were 7 metro areas that grew more than the national rate of 1.51%. The highest annual rate was New York at 6.08%, followed by Chicago at 5.89% and Cleveland at 4.67%. Tampa fell at the fastest rate of -3.34%, followed by the other Florida metro area, Miami, at -1.69%. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Home Price Growth Slows2025-10-28T11:24:29-05:00

Non-Conventional Financing for New Home Sales Loses Ground in 2024

2025-10-20T09:15:39-05:00

Nationwide, the share of non-conventional financing for new home sales accounted for 31% of the market per NAHB analysis of the 2024 Census Bureau Survey of Construction (SOC) data. This is 1.7 percentage point lower than the 2023 share of 32.4%. As in previous years, conventional financing dominated the market at 69.3% of sales, higher than the 2023 share of 67.6%. Non-conventional forms of financing (as opposed to conventional mortgage loans) include loans insured by the Federal Housing Administration (FHA), VA-backed loans, cash purchases and other types of financing such as the Rural Housing Service, Habitat for Humanity, loans from individuals, or state or local government mortgage-backed bonds. The reliance on non-conventional forms of financing varied across the United States, with its share at almost 40% in the East North Central division but only 24% of new single-family home starts in the South Atlantic division. Nationwide, cash purchases were the majority share of non-conventional financing of new home purchases, accounting for 13% of the market share, slightly down from 14% in 2012. However, a NAHB survey based on builders reported that for 2024, all-cash sales were a higher share at 22%. Meanwhile, the Census reported FHA-backed loans accounted for 11% in 2024, whereas in 2023, they had a 12%market share. The share of VA-backed loans was at 4% market share in 2024, while Other Financing was 3% of market share. Regionally, cash financing held the highest share in the East North Central division, where 27% of all homes started were purchased with cash. Cash purchases led non-conventional financing in five out of nine census regions with27% in East North Central, 23% in New England, 21% in East South Central, 16% in Middle Atlantic, and 15% in West North Central. FHA-backed loans accounted for the majority of all non-conventional financing in the West South Central division, accounting for 20% homes started. In New England, very few homes used FHA-backed loans at just _%, along with the East South Central division at just 1% of homes started. VA-backed loans were most used in the West North Central division, accounting for 10% of non-conventional forms of financing. Notably, in New England, only 1% of the homes started used VA-backed loans in 2024. Other financing such as the Rural Housing Service, Habitat for Humanity, loans from individuals, state or local government mortgage-backed bonds were highest in the East South Central division where it was collectively 14% of market share, while the Mountain division reported the lowest share at 1%. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Non-Conventional Financing for New Home Sales Loses Ground in 20242025-10-20T09:15:39-05:00

Existing Home Sales Fall in August Amid Higher Mortgage Rates

2025-09-25T11:21:21-05:00

Existing home sales dipped in August as elevated mortgage rates and higher home prices continued to sideline buyers, according to the National Association of Realtors (NAR). August sales reflected deals closed in June and July, when mortgage rates remained above 6.5%, about 50 basis points higher than current levels.  Mortgage rates have hovered between 6.5% and 7% due to ongoing economic and tariff uncertainty earlier this year. However, rates recently fell below 6.5% for the first time this year as the Fed resumed rate cuts at its September meeting. Last week, the average mortgage rate decreased to 6.26%, the lowest since last Fall. With additional rate cuts expected in coming months, lower mortgage rates and improved inventory should bring more buyers and sellers into the market. Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, fell 0.2% to a seasonally adjusted annual rate of 4.00 million in August. However, on a year-over-year basis, sales were 1.8% higher than a year ago. The existing home inventory level was 1.53 million units in August, down 1.3% from July and up 11.7% from a year ago. At the current sales rate, August unsold inventory sits at a 4.6-months’ supply, unchanged from July but up from 4.2-months in August 2024. Inventory between 4.5 to 6 month’s supply is generally considered a balanced market. Homes stayed on the market for a median of 31 days in August, up from 28 days last month and 26 days in August 2024. The first-time buyer share was 28% in August, unchanged from July but up from 26% from a year ago. The August all-cash sales share was 28% of transactions, down from 31% in July but up from 26% a year ago. All-cash buyers are less affected by changes in interest rates. The July median sales price of all existing homes was $422,600, up 2.0% from last year. This marks the 26th consecutive month of year-over-year increases. The median condominium/co-op price in August was up 0.6% from a year ago at $366,800.  Recent gains for home inventory will put downward pressure on resale home prices in most markets in 2025. Existing home sales in August were mixed across the four major regions. Sales rose in the Midwest (2.1%) and West (1.4%) but fell in the South (-1.1%) and Northeast (-4.0%). On a year-over-year basis, sales were up in the South (3.4%) and Midwest (3.2%) but were down in the West (-1.4%) and Northeast (-2.0%). The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI fell from 72.0 to 71.7 in July, suggesting elevated mortgage rates continued keeping buyers on the sidelines despite improved inventory. On a year-over-year basis, pending sales were 0.7% higher than a year ago, per National Association of Realtors data. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Existing Home Sales Fall in August Amid Higher Mortgage Rates2025-09-25T11:21:21-05:00

House Price Appreciation by State and Metro Area: Second Quarter 2025

2025-09-03T10:21:20-05:00

House price growth continued to slow in the second quarter of 2025, as the housing market faces mounting pressure from high mortgage rates, elevated inventory, and persistent economic uncertainty. After years of rapid growth, the District of Columbia and 27 metro areas recorded modest house price declines during this quarter, highlighting the regional variations in market performance. Nationally, according to the quarterly all-transactions House Price Index (HPI) released by the Federal Housing Finance Agency (FHFA), U.S. house prices rose 3.8% in the second quarter of 2025, compared to the second quarter of 2024. This marks the slowest year-over-year increase since 2013, indicating the broader market cooldown following a decade of robust gains. The FHFA’s all-transactions HPI tracks average price changes based on repeat sales and refinancings of the same single-family properties. It offers insights not only at the national level but also across states and metropolitan areas. Between the second quarter of 2024 and the second quarter of 2025, all 50 states experienced positive year-over-year (YoY) house price appreciation, ranging from 0.9% to 7.5%. In contrast, the District of Columbia saw a 3.4% decline in house prices. Connecticut and New York led the nation with a 7.5% gain each, followed by Rhode Island with a 6.9% gain. On the opposite end, Colorado recorded the lowest house price appreciation at 0.9%. Out of all 50 states and the District of Columbia, 30 states exceeded the national YoY growth rate of 3.8%. However, on a quarterly basis, home price appreciation decelerated in 44 states and the District of Columbia compared to the first quarter of 2025, highlighting a broad-based deceleration in the housing market. House price growth widely varied across U.S. metro areas year-over-year, ranging from -7.4% to +18.1%. Punta Gorda, FL recorded the largest decline in house prices, whereas Sumter, SC posted the highest increase over the previous four quarters. In the second quarter of 2025, 27 metro areas, in reddish color on the map above, experienced negative house price growth. Meanwhile, 359 metro areas experienced price increases. Since the onset of the COVID-19 pandemic, house prices have surged nationally. Between the first quarter of 2020 and the second quarter of 2025, house prices rose by 54.6% nationwide. More than half of metro areas outpaced this national price growth rate of 54.6%. The table below highlights the top ten and bottom ten markets for house price appreciation during this five-year period. Among all the metro areas, house price appreciation ranged from 11.4% to 87.8%. Morristown, TN led the nation with the highest house price appreciation. Lake Charles, LA recorded the lowest appreciation, marking its fifth consecutive quarter at the bottom. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

House Price Appreciation by State and Metro Area: Second Quarter 20252025-09-03T10:21:20-05:00

Existing Home Sales Rise in July

2025-08-21T11:20:18-05:00

Existing home sales rebounded in July as mortgage rates retreated from the recent peak and home price growth slowed, according to the National Association of Realtors (NAR). This rebound was also supported by inventory improvements, with housing supply at its highest level since May 2020. Despite the ever-so-slight improvement in housing affordability, higher mortgage rates and elevated home prices continue to sideline buyers. Mortgage rates have hovered between 6.5% and 7% due to ongoing economic and tariff uncertainty this year, prompting the Fed to pause interest rate cuts. Though mortgage rates recently peaked at 6.89% in May and have drifted downward in recent weeks, they are expected to stay above 6% for longer due to an anticipated slower easing pace in 2025, these prolonged higher rates and high home prices would continue to weigh on the market. As such, sales are likely to remain limited in the coming months. Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 2.0% to a seasonally adjusted annual rate of 4.01 million in July. On a year-over-year basis, sales were 0.8% higher than a year ago. The existing home inventory level was 1.55 million units in July, up 0.6% from June and up 15.7% from a year ago. At the current sales rate, July unsold inventory sits at a 4.6-months’ supply, down from 4.7-months in June but up from 4.0-months in July 2024. Inventory between 4.5 to 6 month’s supply is generally considered a balanced market. Homes stayed on the market for a median of 28 days in July, up from 27 days last month and 24 days in July 2024. The first-time buyer share was 28% in July, down from 30% in June and 29% from a year ago. The July all-cash sales share was 31% of transactions, up from 29% in June and 27% a year ago. All-cash buyers are less affected by changes in interest rates. The June median sales price of all existing homes was $422,400, up 0.2% from last year. This marks the 25th consecutive month of year-over-year increases. The median condominium/co-op price in July was down 1.2% from a year ago at $362,600.  Recent gains for home inventory will put downward pressure on resale home prices in most markets in 2025. Geographically, three of the four regions experienced gains in existing home sales in July, with an increase of 1.4% in the West, 2.2% in the South, and 8.7% in the Northeast. Meanwhile, sales in the Midwest fell 1.1%. On a year-over-year basis, sales were up in the Midwest (1.1%), the Northeast (2.0%) and the South (1.7%) but were down in the West (-4.0%). The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI fell from 72.6 to 72.0 in June, suggesting elevated mortgage rates continued keeping buyers on the sidelines despite improved inventory. On a year-over-year basis, pending sales were 2.8% lower than a year ago, per National Association of Realtors data. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Existing Home Sales Rise in July2025-08-21T11:20:18-05:00
Close Sliding Bar Area

About My Work

Phasellus non ante ac dui sagittis volutpat. Curabitur a quam nisl. Nam est elit, congue et quam id, laoreet consequat erat. Aenean porta placerat efficitur. Vestibulum et dictum massa, ac finibus turpis.

Recent Works

Recent Posts