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 1.4% year-over-year in July, according to Cotality. But that ranged by over eight 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 0.2% monthly and grew 1.4% annually in July, according to Cotality’s Home Price Index (HPI). That marked the lowest month-over-month increase for a June since 2008.
“There are some markets, particularly in the Northeast and in the Midwest, where housing fundamentals remain strong and are supporting continued home price increases. States like West Virginia and South Dakota remain attractive thanks to their relative affordability. This is influencing people to move into these states which, in turn, is pushing up prices,” said Selma Hepp, chief economist at Cotality.
“Mortgage rates are currently at their lowest point since last September when a similar decrease stimulated increased demand for home purchases. Taken together, lower mortgage rates and lower home prices in many markets suggest improved affordability for a number of buyers who have been sitting on the sidelines for a long time.”
Cotality forecast national prices to grow 3.9% by July 2026.
At the state level, New Jersey led the nation with an 6.33% annual gain. Connecticut (6.23%) and South Dakota (6.23%) came next, with Rhode Island (5.94%) and West Virginia (5.67%) rounding out the top five. Six states/districts posted annual declines, with Florida falling furthest (-2.55%). Above that came Washington, D.C. (-1.51%), Montana (-0.60%), Texas (-0.35%), Colorado (-0.04%), and Arizona (-0.01%).
On a month-over-month basis, South Dakota properties saw the biggest boost, rising 2.60%. Behind that came Alaska (1.50%), Maine (1.20%), Wyoming (1.16%), and Montana (1.07%). A total 23 locales experienced monthly declines in July, with Vermont’s 0.81% drop topping the list. Following were Washington (-0.67%), Florida (-0.64%), Arizona (-0.63%) and New York (-0.45%).
The table below shows every state’s HPI changes for July 2025, according to Cotality:
| State | Month-Over-Month % | Year-Over-Year % | Forecasted Month-Over-Month % | Forecasted Year-Over-Year % |
| ALABAMA | 0.09% | 1.96% | 0.47% | 4.60% |
| ALASKA | 1.50% | 3.08% | 0.83% | 8.10% |
| ARIZONA | -0.63% | -0.01% | -0.30% | 1.41% |
| ARKANSAS | 0.27% | 3.78% | 0.42% | 3.84% |
| CALIFORNIA | -0.41% | 0.07% | -0.15% | 4.54% |
| COLORADO | -0.33% | -0.04% | 0.08% | 4.04% |
| CONNECTICUT | -0.03% | 6.23% | 0.42% | 4.01% |
| DELAWARE | -0.07% | 2.08% | 0.16% | 3.64% |
| DISTRICT OF COLUMBIA | 0.71% | -1.51% | 0.39% | 4.55% |
| FLORIDA | -0.64% | -1.98% | -0.05% | 4.52% |
| GEORGIA | -0.01% | 1.47% | 0.33% | 4.03% |
| HAWAII | -0.38% | 0.27% | 0.24% | 6.51% |
| IDAHO | 0.13% | 0.55% | 0.44% | 5.14% |
| ILLINOIS | 0.56% | 5.58% | 0.54% | 3.63% |
| INDIANA | 0.81% | 4.64% | 0.55% | 2.52% |
| IOWA | -0.18% | 2.25% | 0.37% | 4.33% |
| KANSAS | 0.13% | 3.65% | 0.41% | 3.70% |
| KENTUCKY | 0.62% | 3.54% | 0.48% | 4.33% |
| LOUISIANA | 0.04% | 0.45% | 0.37% | 4.06% |
| MAINE | 1.20% | 3.47% | 0.60% | 4.32% |
| MARYLAND | -0.39% | 1.62% | 0.12% | 3.54% |
| MASSACHUSETTS | -0.18% | 3.46% | 0.25% | 3.84% |
| MICHIGAN | -0.01% | 3.81% | 0.31% | 2.71% |
| MINNESOTA | 0.00% | 2.55% | 0.17% | 3.11% |
| MISSISSIPPI | -0.43% | 0.88% | 0.27% | 4.43% |
| MISSOURI | 0.08% | 3.85% | 0.34% | 3.59% |
| MONTANA | 1.07% | -0.60% | 0.45% | 4.95% |
| NEBRASKA | 0.31% | 2.38% | 0.38% | 3.54% |
| NEVADA | -0.43% | 1.87% | -0.08% | 3.36% |
| NEW HAMPSHIRE | 0.10% | 4.69% | 0.31% | 4.14% |
| NEW JERSEY | -0.29% | 6.33% | 0.17% | 2.25% |
| NEW MEXICO | 0.06% | 0.43% | 0.46% | 4.51% |
| NEW YORK | -0.45% | 2.80% | 0.51% | 4.85% |
| NORTH CAROLINA | -0.20% | 1.94% | 0.25% | 4.35% |
| NORTH DAKOTA | 0.44% | 5.40% | 0.53% | 4.83% |
| OHIO | 0.11% | 3.75% | 0.35% | 2.38% |
| OKLAHOMA | 0.21% | 2.44% | 0.39% | 3.75% |
| OREGON | -0.35% | 0.21% | 0.02% | 5.36% |
| PENNSYLVANIA | 0.59% | 4.28% | 0.42% | 3.27% |
| RHODE ISLAND | 0.76% | 5.94% | 0.51% | 3.02% |
| SOUTH CAROLINA | -0.25% | 2.41% | 0.34% | 4.71% |
| SOUTH DAKOTA | 2.60% | 6.23% | 0.70% | 5.27% |
| TENNESSEE | -0.07% | 1.96% | 0.41% | 4.83% |
| TEXAS | -0.18% | -0.35% | 0.26% | 3.48% |
| UTAH | 0.14% | 0.74% | 0.39% | 4.70% |
| VERMONT | -0.81% | 1.51% | 0.34% | 4.87% |
| VIRGINIA | 0.13% | 3.07% | 0.10% | 2.33% |
| WASHINGTON | -0.67% | 0.56% | -0.06% | 5.04% |
| WEST VIRGINIA | 0.70% | 5.67% | 0.43% | 4.35% |
| WISCONSIN | 0.29% | 5.37% | 0.32% | 3.35% |
| WYOMING | 1.16% | 1.23% | 0.59% | 5.05% |
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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