Home Prices Increase Slightly

Home prices are growing, although the change is relatively small. According to the Calculated Risk blog, citing data from Freddie Mac, home prices increased by 3.4% year-over-year as of February 2025. However, this is lower than January’s 3.6% rise. Comparatively, home prices hit a peak in July 2021, when they grew by 19% and hit a low of 0.9% in May 2023. Over the past three months, home prices have grown at an annualized rate of 2.2%, while the six-month annualized growth rate stands at 4.3%.

As of February, 15 states and D.C. were below their previous peaks, Seasonally Adjusted. The largest seasonally adjusted declines from the recent peaks are in D.C. (-3.6), Delaware (-1.8%), Mississippi (-1.3%), Louisiana (-1.1%), Arkansas (-1.0%) and Florida (-0.9%). Read more