Cotality: House Price Growth Slowed to 1.1% YoY in October

by From Cotality (formerly CoreLogic): US home price insights — December 2025 • Year-over-year price growth continues its downward trend, only rising 1.1% in October 2025. • Price declines expanded from six of the 100 largest metros in January to 32 by October, marking the broadest softening of prices since the early 2010s. ... This year began with a stable growth trajectory, with national price growth posting an annual increase of 3.4% in January. However, that momentum slowed steadily as the year progressed. By October, annual appreciation was a mere 1.1% annual increase—the lowest rate since early 2012. "The housing market in 2025 demonstrated remarkable resilience despite significant headwinds. Slowing price growth reflects a much-needed rebalancing after years of unsustainable gains. While some markets are experiencing declines, these adjustments will help restore affordability over time and make housing more accessible to a wider group of buyers,” said Cotality’s Chief Economist Dr. Selma Hepp. This deceleration highlights the impact of higher mortgage rates earlier in the year and persistent affordability challenges. Furthermore, price growth was dampened by a notable increase in inventory. Many markets saw a surge in both existing and newly built homes, slowing rates of in-migration and weakened demand. The robust price increases of 2022 when top metros — primarily in Florida and the Southeast — saw gains exceeding 30% has now given way to declines. At the start of 2025, only six metros — primarily in Florida — posted year-over-year drops. By October, that number surged to 32, as pricing downturns extended into Texas, California, and various states throughout the Mountain West. emphasis added This graph from Cotality shows the Top 10 coolest markets. The list is dominated by Florida and Texas. According to Cotality, the highest risk markets are all in Florida. House prices are under pressure with more inventory and sluggish sales.