U.S. home price growth is expected to remain flat in 2025, though recent homebuying trends suggest that pockets of the country may see more pronounced price fluctuations, according to a report from Cotality.
Cotality, which recently rebranded itself from CoreLogic, sees home prices increasing 3.3% from January 2025 to January 2026, which would be the exact same growth rate as the prior 12-month period looking back to January 2024, per company data.
According to Selma Hepp, Cotality’s chief economist, the flattening home price growth reflects tepid homebuying demand.
“Falling consumer sentiment suggests potential homebuyers are wary of the short-term economic outlook and future inflation,” Hepp wrote in the report. “Nevertheless, with the spring homebuying season upon us, the recent improvements in mortgage rates may help invite homebuyers back into the market.”
The company’s analysis reveals that home prices in the Northeast are tracking upward, particularly in western New York and Connecticut. Those states combined for seven of Cotality’s “top 10 hottest markets” for home price growth.
On the flip side, Florida had five cities in the company’s “top 10 coolest markets,” topped by Fort Myers and Sarasota.
Cotality data shows that the national median single-family home price stands at $375,000. To afford a home at that price point, a household would need $83,400 in annual income.
