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Highlights

  • Home Prices Up 2.2% YoY: March marks the third consecutive month of slowing price growth.

  • Median Price Hits $380,000: Up $8,000 from last March, continuing a 21-month upward trend.

  • Market Shifting: More listings and slightly lower mortgage rates favor buyers.

A new report from Homes.com, a leading online residential marketplace owned by CoStar Group, reveals that while U.S. home prices continued to climb in March 2025, the pace of appreciation slowed for the third month in a row—signaling a possible turning point in the housing market.

According to preliminary data from the site’s monthly analysis, home prices increased by 2.2% year-over-year in March. This follows a 2.7% rise in February and a 3.6% jump in January. Though this marks 21 consecutive months of rising prices, the rate of growth has clearly decelerated since its recent peak of 5.6% in December.

In dollar terms, the national median home price rose by $8,000, reaching $380,000 in March, compared to $372,000 in the same month last year.

While home prices remain elevated, several factors are beginning to shift momentum toward buyers. March saw a modest decline in mortgage rates, which improves affordability. Additionally, the number of homes listed for sale increased, providing more options for prospective buyers and slightly reducing the leverage sellers have enjoyed over the past two years.

“This data points to a market that’s slowly rebalancing,” the report notes. “The mix of lower borrowing costs and increased inventory gives buyers more breathing room, and we’re seeing the early signs of a shift from a seller’s market to a more neutral—if not buyer-friendly—environment.”

Regional Trends Show Stark Contrasts

The Northeast and Midwest emerged as leaders in price appreciation in March, with four of the top 10 markets in each region. Cleveland posted the strongest gains, with home prices soaring more than 10% year-over-year, followed by Chicago, New York City, and Pittsburgh.

In contrast, Southern markets showed mixed performance. Only Austin made it into the top 10 for price gains, while five Southern cities landed among the 10 weakest-performing markets. Notably, Florida accounted for three of the four U.S. markets that saw price declines in March, including Orlando, Jacksonville, and Tampa. San Francisco was the only non-Florida market to post a decline.