Home prices rose modestly on an annual basis in April 2025 while continuing to slow, hinting at more relief on the horizon for homebuyers who have continued to struggle with affordability.
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Home prices rose 3 percent on an annual basis in April, according to the U.S. Federal Housing Finance Agency House Price Index (FHFA HPI). Meanwhile, the S&P CoreLogic Case-Shiller Index posted a 2.7 percent annual gain, down from the 3.4 percent annual gain seen the previous month.
Month-over-month, the FHFA HPI fell by 0.4 percent while the S&P CoreLogic Case-Shiller National Index increased by 0.6 percent.
“The housing market continued its gradual deceleration in April, with annual price gains slowing to their most modest pace in nearly two years,” Nicholas Godec, head of fixed income tradables and commodities at S&P Down Jones Indices, said in a statement. “What’s particularly striking is how this cycle has reshuffled regional leadership — markets that were pandemic darlings are now lagging, while historically steady performers in the Midwest and Northeast are setting the pace. This rotation signals a maturing market that’s increasingly driven by fundamentals rather than speculative fervor.”
By region, the South Atlantic posted the biggest monthly price gains at 1.2 percent, while the Mid-Atlantic saw the largest 12-month gains at 7.4 percent, according to the FHFA HPI. Twelve-month changes across each of the nine census divisions were all positive, with the slightest gains at 0.5 percent in the Pacific region.
The Case-Shiller 10-City Composite posted an annual increase of 4.1 percent, down from 4.8 percent the month before. The 20-City Composite was also down from the previous month’s gains at a 3.4 percent annual increase, down from 4.1 percent in March. Among the 20 cities, New York City saw the highest annual gain at a 7.9 percent increase. Chicago and Detroit were not far behind with annual gains of 6 percent and 5.5 percent, respectively.
