Cotality’s latest Home Price Index report, published Wednesday, shows the pace of U.S. home price growth has notably slowed, with prices rising 0.4% year over year in March.

But the slowdown isn’t going to last, the data analytics company suggested, forecasting a 5.1% increase in U.S. home prices by March 2027.

While people might be getting ready to move before home prices can rise, Cotality says high mortgage rates are keeping them from being able to take that step.

“The housing market is currently stuck in a holding pattern,” stated Selma Hepp, Cotality’s chief economist, in a statement accompanying the report. “Although housing inventories have been on the rise in many markets, broad discounting is still rare, keeping prices high. In fact, asking prices of newly listed homes continue to trend more than 2% above closing prices, suggesting that very few sellers are budging on their expectations.”

Bridgeport, Conn., posted the highest year-over-year home price increase of the 100 largest metro areas in March, at 7.9%. Newark, N.J., saw the second highest gain at 6.8%.

Cotality’s look at state figures showed Illinois experienced the strongest annual growth in March, increasing by 5.7%. It was followed by New Jersey and Connecticut at 5.6%. Nebraska (5%) and Indiana (4.8%) filled out the top five states. Twelve other states reached new highs in price growth.

South Dakota experienced the most significant negative home price appreciation in March (-3.5%), followed by Washington, D.C. (-3.1%) and Florida (-2.4%).

According to Cotality data, 70 of the largest 100 metros are currently overvalued, meaning their current home price indexes exceed their long-term values by greater than 10%, while 23 are normal and seven are undervalued.

Hepp observed a “massive divergence between current performance and forecasted growth on the West Coast.” She noted that tech hubs like Seattle and San Jose appear to be struggling, with “year-over-year numbers still in the red.” But home prices in San Francisco spiked 5% during the first three months of 2026.

“These markets are starting to look normal or even undervalued relative to their long-term economic power,” Hepp stated. “We’re likely witnessing these cities bounce off the bottom of their correction cycle before they begin to climb again.”