Home prices rose nearly 3% annually in Q2, FHFA says

U.S. house prices rose 2.9% between the second quarter of 2024 and the second quarter of 2025, according to the Federal Housing Finance Agency‘s House Price Index (HPI).

Nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012, FHFA’s data shows. However, house prices for Q2 2025 remained unchanged compared to the first quarter of the year; FHFA’s seasonally adjusted monthly index for June was down 0.2% from May.

House prices rose in 46 states year over year, with the top five states with the highest annual appreciation being 1) New York, 8.0%; 2) Connecticut, 7.8%; 3) New Jersey, 7.5%; 4) Mississippi, 7.3%; and 5) Illinois, 6.7%.

House prices were down in only four states and the District of Columbia, which experienced the most significant price decline at 7.6%.

Out of the 100 largest metropolitan areas, house prices rose in 81 areas over the previous four quarters. The annual price increase was the greatest in Rochester, N.Y., at 10.3%, while the metropolitan area that experienced the most significant price decline was North Port-Bradenton-Sarasota, Fla., at 11.2%.

All nine census divisions posted positive house price changes year-over-year; the Middle Atlantic division recorded the strongest appreciation of 6.7% year-over-year. Conversely, the Pacific division recorded the smallest four-quarter appreciation at 0.9%.

FHFA’s HPI incorporates tens of millions of home sales and offers insights about house price changes at the national, census division, state, metro area, county, ZIP code and census tract levels.

The FHFA releases HPI data and reports quarterly and monthly, with the next monthly report expected to be released on Sept. 30. The next quarterly report will be on Nov. 25, the agency confirmed in its press release.