Home prices rise unevenly as growth moderates nationwide

The latest home price data points to ongoing strength in parts of the country considered the hottest for sales, but there are wide variations in the pace of growth nationwide, according to two indices.

Price growth moderated nationally in January to 4.8% on a year-over-year basis, according to the Federal Housing Finance Agency, with demand still providing a bump up in cost to compound affordability and mortgage rate concerns. FHFA's monthly House Price Index inched up from 4.7% in December but showed noticeable deceleration from the 6.7% pace of growth one year earlier.  

Month over month, housing costs inched up 0.2%, slowing from the upwardly revised 0.5% in December, the FHFA said. 

Similarly, the S&P Corelogic Case-Shiller Index reported 4.1% national growth in January based on its calculations. The pace slowed from 6% one year prior but rose from a revised 4% in December. The seasonally adjusted month-to-month growth came in at 0.6%.  

Volatility in interest rates and the housing market led to swings in buyer enthusiasm over the past year, but price movements still reflect pent-up demand, experts said.    

"Home price growth continued to moderate in January, reflecting a clear two-part story across the past year," said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices, in a press release. 

"Rising mortgage rates throughout the year elevated monthly payment burdens, which, combined with already high home prices, pushed affordability to multidecade lows in many regions. This likely contributed to subdued activity in the back half of the year, with both buyers and sellers exercising caution," he continued.

Mortgage rates shot up in mid January to its highest mark since last summer before beginning a pullback, which has largely continued in the following two months, according to Freddie Mac's weekly analysis. 

Although home appreciation and rates could discourage many hoping to purchase, January's upward price trend still "is evidence that not all buyers are held back," noted Zillow Chief Economist Skylar Olsen. 

"Strong stock portfolios, and in the case of repeat buyers, record high home equity from the last sale, enable enough buyers to keep the pressure on. These trends may abate with the loss of value in U.S. stock portfolios over the end of February and early March," she said.

Data by region indicates some markets are faring better than others, but all nine U.S. Census divisions posted annual growth in FHFA's index. The West South Central division saw the smallest year-over-year gain at 2.4%. The Eastern region, which includes some of 2025's most promising markets for sales, saw prices rise the most, up by 7.3% in New England and 8.2% in the Middle Atlantic division.  

The Pacific and Mountain divisions, two of the areas where home appreciation boomed the most a few years ago, saw growth moderate to 3.6% and 3.7%, respectively. 

Monthly changes between December and January by region ranged from 0.8% depreciation in the South Atlantic to 1% growth in the West North Central part of the country.