First American Data & Analytics, a division of First American Financial Corporation, released its May 2025 Home Price Index (HPI) report, indicating that national annual home price appreciation has reached its slowest rate since March 2012.
The report, which tracks home price changes less than four weeks behind real time at national, state, and metropolitan levels, revealed a month-over-month increase of +0.4 percent from April 2025 to May 2025, with a year-over-year appreciation of +2.1 percent from May 2024 to May 2025. This follows an upward revision of the March to April 2025 HPI metric by 0.1 percentage points, from +0.4 percent to +0.5 percent.
Mark Fleming, chief economist at First American, commented on the findings: “After decelerating for 16 straight months, national house prices stabilized in May at 2.1 percent. Rising mortgage rates in April and May reduced affordability, tempering demand while the supply of homes for sale increased, dragging annual appreciation to the slowest pace since 2012. Slower national price appreciation helps household incomes offset some of the impact of still-elevated mortgage rates on affordability, which is good news for potential buyers.”
The HPI segments home price changes at the metropolitan level into three price tiers: starter (bottom third), mid-tier (middle third), and luxury (top third). While national growth is at a 13-year low, 11 of the 30 markets tracked exceeded the national appreciation pace. The fastest appreciating markets were primarily in the Northeast and Midwest, including Cambridge, Mass., Pittsburgh, Cincinnati, St. Louis, and New York. Conversely, some Southern and Western markets experienced declines or flat prices.
Fleming noted, “While house prices declined or were flat in many Southern and Western markets, the declines were small relative to equity gained in the pandemic boom. For example, house prices in Tampa, Fla., fell by 4 percent annually, but Tampa was one of the hottest pandemic-era growth markets, with prices increasing 70 percent from pre-pandemic to peak, so most Tampa homeowners have lost little equity compared to what was gained.”
Key year-over-year changes in starter tier HPI for selected Core-Based Statistical Areas (CBSAs) include:
* Austin, Texas: +12.0 percent (Starter), +2.0 percent (Mid-Tier), -5.0 percent (Luxury)
* Cambridge, Mass.: +9.5 percent (Starter), +3.8 percent (Mid-Tier), +4.8 percent (Luxury)
* Pittsburgh: +8.6 percent (Starter), +3.0 percent (Mid-Tier), +5.8 percent (Luxury)
* Warren, Mich.: +5.8 percent (Starter), +3.3 percent (Mid-Tier), +2.8 percent (Luxury)
* Washington: +3.2 percent (Starter), +2.4 percent (Mid-Tier), +1.7 percent (Luxury)
CBSAs with the greatest year-over-year increases in overall HPI were:
* Cambridge, Mass.: +6.0 percent
* Pittsburgh: +5.7 percent
* Cincinnati: +5.6 percent
* St. Louis: +5.4 percent
* New York: +4.6 percent
CBSAs with a year-over-year decrease in HPI included:
* Oakland, Calif.: -7.4 percent
* Tampa, Fla.: -4.1 percent
* San Diego: -2.0 percent
* Denver: -1.9 percent
* Orlando, Fla.: -1.7 percent
The First American Data & Analytics HPI employs a repeat-sales methodology, analyzing more than 46 million paired transactions to measure price changes for the same property over time. The indices, updated monthly, cover single-family home prices, including distressed sales, beginning in 1980. In non-disclosure states, the HPI integrates public sales records, MLS sold and active listings, and appraisal data to estimate house prices. Real Estate-Owned (REO) transactions are not included.
First American Data & Analytics, a division of First American Financial Corporation, is a national provider of property-centric information, risk management, and valuation solutions. The company maintains an extensive property and ownership dataset, encompassing over 8.6 billion document images. Its platforms include DataTree®, FraudGuard®, RegsData®, First American TaxSource™, and ACI®.
First American Financial Corporation (NYSE: FAF) provides title, settlement, and risk solutions for real estate transactions globally. The company reported total revenue of $6.1 billion in 2024. The next release of the First American Data & Analytics House Price Index is scheduled for the week of July 14, 2025.
