Millenium Home Mortgage LLC
Home prices continue to defy gravity
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Published Date 3/3/2025
“It ain’t over ’til it’s over” was never more true than the past few months, when real estate home price growth kept accelerating through the month of December and beyond, especially in the Northeast.
Realtor.com’s Ken Griffith reports on how valuations remain surprisingly resilient as nationwide, home prices grew 3.9% in December from a year earlier — more than the 3.8% gain recorded in November, according to the latest S&P CoreLogic Case-Shiller Index data recently released.
“The Northeast continued to lead all regions in growth, and home prices reached an all-time high in Boston, the only market where they did so for the three-month period that ended in December,” he says, with New York again reporting a 7.2% increase — the highest annual gain among the 20 largest cities. Chicago follows, with 6.6%; and Boston, at 6.3%. Balmy Tampa, FL, however, posted the lowest return, with prices falling 1.1% annually.
Realtor.com’s Hannah Jones explains how regional variation in the housing market means that buyers across the country face vastly different market conditions. "Markets in the Midwest and Northeast continued to see substantial demand, resulting in sustained price growth in December, while the South and West continued to soften."
Griffith also reports on how the index's composite of home prices in the 20 largest metro areas posted a year-over-year increase of 4.5%, up from a 4.3% increase in the previous month. But the continued expansion of home prices came in defiance of sluggish home sales, which were at a near 30-year low in 2024. High mortgage rates and affordability concerns pushed many buyers to the sidelines, leaving mostly the well-heeled or cash buyers to jump into the market.
The aftermath of the pandemic created some strange bedfellows, according to Griffith. “Recent home price trends show that the big Northeastern cities that suffered most during the depths of the pandemic are now enjoying a rebound, while former pandemic boomtowns such as Tampa and Phoenix, are lagging behind.”
S&P Dow Jones’ Brian D. Luke elaborates: “It has been five years since the COVID-19 outbreak took hold of the global economy, sparking unprecedented volatility, massive fiscal and monetary stimulus, and a housing market that responded to national migratory changes in how we work and where we live.”
Overall, he reports that national home prices have risen by 8.8% annually since 2020, led by markets in Florida, North Carolina, Southern California, and Arizona.
While home price growth (as measured by the Case-Shiller index) continues to outpace inflation, it is now far below the peak appreciation of 18.9% observed in 2021 and lags behind the historical average of the index, Luke notes.
"Home prices stalled during the second half of the year with markets in the West dropping the fastest," he says.
While its Golden Gates remain open, San Francisco, which saw 11% lower prices than the all-time high they reached in May 2022, felt home prices drop 4.5% during the latter half 2025. Seattle followed with a 3% decline.
Realtor, TBWS
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Millenium Home Mortgage
Manager
NMLS: 51519
Millenium Home Mortgage LLC
1719 Route 10 East, Suite 206, Parsippany NJ
Company NMLS: 51519
Office: 973-402-9112
Email: connie@mhmlender.com
