The 2025 spring homebuyers season ended softly, with slower price growth dominating the narrative and potentially opening the door to more buyers.
• Year-over-year price growth dipped to 1.4% in July 2025. This is almost half the rate of inflation recorded in the Consumer Price Index that month.
• Monthly price increases have been nominal this year and were in negative territory (down 0.2%) between June and July 2025.
• South Dakota saw prices rise 6.2% year-over-year, entering the top 5 states with the highest home price growth. The full list includes New Jersey, South Dakota, Connecticut, Rhode Island, and West Virginia , all of which continue to record more than triple the national rate of price growth.
• Florida, Texas, Montana, and Washington D.C. reported negative home price growth.
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“July’s decline in home prices is atypical — the last two periods where we saw monthly declines in July was in 2022 and during 2006-2008 period — but this year’s decline follows a year of relatively flat home prices and persistent weakness in homebuying demand,” Cotality’s Chief Economist Dr. Selma Hepp explained. “And even though price weakness has spread across more markets, 50% continue to see prices increase. The markets where prices are increasing tend to be more affordable markets in Midwest, such as the Chicago metro; Indianapolis; Cleveland; Tulsa OK; and Louisville, KY; as well as Philadelphia and the New York metro. At the same time, Florida markets and those in the West continue to see persistent price declines.”
emphasis added
This graph from Cotality shows the Top 10 coolest markets.