U.S. home prices increased 0.6% in March compared with February but were up only 2% compared with March 2024, according to Cotality’s latest home price index report.
It was the slowest annual home price growth in more than a decade.
Detached single-family homes saw prices rise 2.46% in March compared with a year earlier – however, attached homes posted a decrease of 0.08% annually.
It was the first time since 2012 that attached homes decreased in value.
Markets that saw largest home price gains were in Northeast and Midwest, particularly more affordable areas surrounding large expensive metros.
Florida, Texas, Hawaii and Washington D.C. reported negative home price growth.
“Housing market headwinds continue to challenge homebuying demand, but improved for-sale supply is providing buyers with more options and helping keep softer price pressures for those looking to buy this spring,” says Selma Hepp, chief economist for Cotality, in the report. “And while annual home price growth has slowed considerably, home prices this spring have held up, and gains have mostly mirrored trends seen before the pandemic. This is encouraging given the fears that consumer sentiment has faltered. Cotality’s home price forecast for the coming month expects the solid home price trend to continue.”
The Northeast, which has been an outlier in recent months and posting solid growth, had a couple of states reverse course in April. New York and Vermont posted home prices that were furthest from their peaks.
Also, more markets are posting negative growth, with Hawaii, Florida, Texas, and Washington D.C. seeing price appreciation dip to -2%, -0.8%, -0.7%, and -0.6%, respectively.
“It is important to note that the number of markets where home prices are declining has not grown notably,” Hepp says. “About 14 of the 100 largest markets reported annual declines, up from 12 markets last month,
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