New data from ICE Mortgage Technology shows that after declining for eight months, home price growth increased slightly in September.
According to the September ICE Home Price Index, the annual price growth rate rose somewhat from a revised +0.9% in August to +1.0% in September. During the month, prices increased by +0.08% on a seasonally adjusted basis.
The question is, why? Findings showed:
- Single-family homes accounted for the majority of the firming, up 1.3% from the same period last year and up 1.2% from August.
- Prices for condos are down 1.8% from the same period last year, which is a slight improvement from August’s -1.9% decline. The condo market is still depressed.
Measuring Home Price Trends Nationwide
Seasonally adjusted prices increased in two-thirds of key marketplaces, compared to 41% two months earlier. The fewest price declines in six months occurred in just 34% of markets.
The findings differed significantly by location, with the Northeast and Midwest experiencing home price firming due to inventory shortfalls and increased affordability, respectively.
Select Market Declines: On the other hand, four Texas markets and eight Florida markets rank among the top 15 with the most robust yearly price drops. Cape Coral (-14.6%) and Austin (-21.5%) have had the biggest declines from their most recent highs.
“Softer interest rates and improved home affordability have created momentum among prospective homebuyers in recent weeks,” said Andy Walden, Head of Mortgage and Housing Market Research for ICE. “That improved demand is running up against tighter supply as sellers have taken a more dovish tone on listings in recent months, leading to firmer price dynamics in September.”
The latest (September) monthly House Price Index (HPI) from the Federal Housing Finance Agency (FHFA) revealed that home prices in the U.S. decreased by 0.1% in July. The price of homes increased 2.3% between July 2024 and July 2025. The previously stated June price drop of 0.2% did not alter.
Seasonally adjusted monthly variations in home prices for each of the nine census divisions varied from -1.2% in the Middle Atlantic division to +0.3% in the East North Central division. From +0.2% in the Pacific division to +5.1% in the Middle Atlantic division, all of the 12-month changes were positive.
Note: The FHFA HPI is a comprehensive collection of publicly available house price indexes that measure changes in single-family home values based on data that extend back to the mid-1970s from all 50 states and over 400 American cities. It 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. FHFA uses a fully transparent methodology based upon a weighted, repeat-sales statistical technique to analyze house price transaction data.
The next HPI report will be released October 28, 2025, and will include monthly data through August 2025.
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