Last month marked the first uptick in annual price growth since 2024
After nearly a year of slowing growth, United States house prices saw a modest acceleration in October, according to the latest First American Data & Analytics House Price Index (HPI) report.
The national annual price growth rate ticked up by 0.8% year over year, breaking a 10-month streak of deceleration and signaling what experts described as a period of price stabilization rather than a return to rapid appreciation.
“After 10 months of deceleration, October brought a small reacceleration in annual house price growth—the first since November 2024,” Mark Fleming, chief economist at First American, said.
“The uptick is modest and better characterized as price stabilization, as affordability headwinds and gradually increasing supply continue to sap price pressures. Appreciation remains close to its slowest pace since 2012 and will likely stay that way through the end of the year.”
The report revised last month’s HPI for August to September 2025 upward by 0.1 percentage point, from -0.1% to flat, further underscoring the market’s slow but steady footing.
Luxury markets outpace rest
The report, which tracks home price changes at national, state, and metropolitan levels, highlighted that the luxury segment led the recovery.
“Local price momentum is ‘top-led.’ Across the 30 largest markets we track, price appreciation is strongest in the luxury tier, led by New York, Newark, N.J. and Pittsburgh,” Fleming said.
“At the high end of the market, equity-rich buyers are less constrained by mortgage rates, as cash financing is more common. Home buyers in the starter and mid-tier segments remain more rate-sensitive and the weaker price growth in these tiers reflects the impact of still-low affordability.”
New York’s luxury segment posted a striking 14.8% annual increase, while Newark and Pittsburgh’s luxury tiers rose 5.9% and 5.1%, respectively.
Starter and mid-tier segments lagged, with New York’s starter tier actually slipping 0.1%.
Pittsburgh led overall metro gains at 4.5%, followed by Newark (4.0%), Warren, Mich. (3.3%), and New York (3.2%).
In contrast, several Sun Belt markets like Oakland (-5.9%), Tampa (-4.4%), and Phoenix (-4.0%) saw notable year-over-year declines.
Broader market faces affordability squeeze
Despite the luxury surge, most buyers remain squeezed by affordability.
The Mortgage Bankers Association reported that mortgage applications for home purchases in October dropped 2.6% compared to the same month last year.
Meanwhile, Redfin data showed that the national median sale price in October climbed 2% to $392,375, marking the largest six-month gain.
Looking ahead, Fleming suggested that the stabilization trend is likely to persist: “Appreciation remains close to its slowest pace since 2012 and will likely stay that way through the end of the year,” he said.
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