Slowing home price growth
The pace of home value growth finally normalized since the historical highs of 2020 and 2021.
Overall, U.S. home prices rose 1.3% year-over-year in August (while dipping 0.3% month-over-month), according to Cotality. But that ranged by over 10 percentage points across the country.
See which states saw the largest and smallest rates of home price growth.
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Since skyrocketing from the extreme demand of rock-bottom mortgage rates in 2020 and 2021, the pace of housing value growth continues to decelerate.
Single-family home prices dipped 0.3% monthly and grew 1.3% annually in August, according to Cotality’s Home Price Index (HPI). That marked the lowest month-over-month increase for a June since 2008.
“Recent increases in mortgage application activity indicate that homebuyers are gradually re-entering the market. Rising inventories are providing buyers with more choices while price cuts are now more common in certain local markets. This has slowly shifted negotiating power towards buyers – if they can afford to act. But, with some sellers pulling back and further expected decline in mortgage rates, price pressures could resurge,” said Selma Hepp, chief economist at Cotality.
“The housing market remains at a crossroads—where mortgage rates, inventory shifts, local dynamics, and policy decisions converge. Whether demand unlocks further or stalls will depend not just on market and economic fundamentals, but perhaps, most crucially, on consumer sentiment which remains fragile particularly when it comes to job security and financial prospects. Until buyers feel confident in both the market and their own financial footing, many will remain on the sidelines.”
Cotality forecast national prices to grow 3.9% by August 2026.
At the state level, South Dakota led the nation with an 8.06% annual gain. Connecticut (6.02%) and West Virginia (5.83%) came next, with New Jersey (5.72%) and New Hampshire (5.62%) rounding out the top five. Seven states/districts posted annual declines (up from six in July), with Florida falling furthest (-2.16%). Above that came Washington, D.C. (-1.66%), Colorado (-0.75%), Hawaii (-0.64%), Arizona (-0.49%), Texas (-0.42%), and California (-0.12%).
On a month-over-month basis, South Dakota properties also saw the biggest boost, rising 1.43%. Behind that came Maine (1.17%), Wyoming (0.94%), Indiana (0.75%) and Utah (0.71%). A total 26 locales experienced monthly declines in August (up from 23 in July), with D.C.’s 1.02% drop topping the list. Following were New York (-0.85%), Colorado (-0.71%), Rhode Island (-0.7%), and Arizona (-0.69%).
The table below shows every state’s HPI changes for August 2025, according to Cotality:
| State | Month-Over-Month % | Year-Over-Year % | Forecasted Month-Over-Month % | Forecasted Year-Over-Year % |
| ALABAMA | 0.18% | 1.86% | 0.35% | 4.48% |
| ALASKA | 0.51% | 4.06% | 0.46% | 7.76% |
| ARIZONA | -0.69% | -0.49% | -0.26% | 2.04% |
| ARKANSAS | 0.07% | 3.86% | 0.23% | 3.71% |
| CALIFORNIA | -0.35% | -0.12% | -0.15% | 4.78% |
| COLORADO | -0.71% | -0.75% | -0.13% | 3.63% |
| CONNECTICUT | -0.10% | 6.02% | 0.16% | 4.19% |
| DELAWARE | -0.12% | 2.09% | 0.48% | 4.56% |
| DISTRICT OF COLUMBIA | -1.02% | -1.66% | -0.01% | 4.19% |
| FLORIDA | -0.32% | -2.16% | -0.02% | 4.77% |
| GEORGIA | -0.11% | 1.51% | 0.07% | 3.65% |
| HAWAII | -0.33% | -0.64% | 0.26% | 6.61% |
| IDAHO | -0.23% | 1.00% | 0.21% | 5.16% |
| ILLINOIS | 0.19% | 5.05% | 0.28% | 3.58% |
| INDIANA | 0.75% | 4.17% | 0.43% | 2.62% |
| IOWA | 0.14% | 2.25% | 0.29% | 4.42% |
| KANSAS | 0.04% | 4.51% | 0.21% | 3.73% |
| KENTUCKY | 0.51% | 4.22% | 0.50% | 4.42% |
| LOUISIANA | -0.32% | 0.34% | 0.19% | 3.85% |
| MAINE | 1.17% | 5.19% | 0.59% | 4.49% |
| MARYLAND | -0.05% | 1.57% | 0.05% | 3.94% |
| MASSACHUSETTS | -0.14% | 3.03% | 0.02% | 3.95% |
| MICHIGAN | 0.01% | 3.78% | 0.19% | 2.92% |
| MINNESOTA | -0.28% | 2.46% | -0.02% | 3.17% |
| MISSISSIPPI | -0.13% | 1.55% | 0.18% | 4.32% |
| MISSOURI | 0.00% | 3.60% | 0.21% | 3.70% |
| MONTANA | 0.12% | 1.58% | 0.43% | 5.04% |
| NEBRASKA | 0.44% | 2.70% | 0.28% | 3.60% |
| NEVADA | -0.60% | 0.75% | -0.30% | 3.01% |
| NEW HAMPSHIRE | 0.58% | 5.62% | 0.17% | 4.33% |
| NEW JERSEY | 0.01% | 5.72% | -0.04% | 2.50% |
| NEW MEXICO | 0.59% | 0.99% | 0.78% | 5.06% |
| NEW YORK | -0.85% | 1.78% | 0.00% | 4.39% |
| NORTH CAROLINA | -0.21% | 1.72% | 0.13% | 4.21% |
| NORTH DAKOTA | 0.65% | 5.46% | 0.45% | 4.86% |
| OHIO | 0.08% | 3.75% | 0.22% | 2.47% |
| OKLAHOMA | 0.05% | 2.38% | 0.20% | 3.59% |
| OREGON | -0.30% | 0.26% | -0.03% | 5.42% |
| PENNSYLVANIA | 0.46% | 4.30% | 0.26% | 3.29% |
| RHODE ISLAND | -0.70% | 4.31% | -0.23% | 2.26% |
| SOUTH CAROLINA | -0.58% | 2.03% | 0.19% | 4.53% |
| SOUTH DAKOTA | 1.43% | 8.06% | 0.10% | 4.68% |
| TENNESSEE | -0.35% | 1.71% | 0.17% | 4.50% |
| TEXAS | -0.36% | -0.42% | 0.08% | 3.38% |
| UTAH | 0.71% | 1.54% | 0.60% | 5.37% |
| VERMONT | 0.21% | 1.60% | 0.25% | 5.16% |
| VIRGINIA | -0.16% | 2.65% | -0.07% | 2.47% |
| WASHINGTON | -0.47% | 0.65% | -0.04% | 5.44% |
| WEST VIRGINIA | 0.67% | 5.83% | 0.30% | 4.41% |
| WISCONSIN | -0.34% | 4.88% | 0.08% | 3.28% |
| WYOMING | 0.94% | 2.39% | 0.61% | 5.09% |
Advice for home buyers
Whether you’re a buyer or seller, navigating the housing market and its prices can be challenging.
When you’re shopping for property, you should know what to look for, what advice to take, and how to negotiate before putting offers on a house. And you should always see what financial assistance you may qualify for.
If you’re ready to become a homeowner, reach out to a local mortgage lender and get started.
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