Home price appreciation posted soft gains in August, increasing just 2.4% from a year earlier, according to a preliminary report from Homes.com. The national median price reached $389,000 — up $9,000 from August 2024 but slightly below the June peak of $395,000. 

So far in 2025, home prices have grown at about half the pace of 2024. From January through August, prices increased just 3.5%, compared to a 7% rise during the same period last year. 

The housing market overall remains soft, with conditions continuing to shift toward a buyer’s market. Homebuying demand has been subdued, and inventory levels have returned to pre-pandemic norms as homes stay on the market longer. Elevated mortgage rates have been a key factor in dampening demand, although recent rate declines could help shift that trend. Mortgage rates dropped to 6.49% last week — the lowest daily rate since October 2024. 

According to the report, regional trends continue to vary widely. Of the top 40 largest markets, price appreciation remained strongest in the Midwest, where some metros posted year-over-year gains of over 7%. Detroit, Milwaukee, Cleveland and St. Louis are in the top five markets by price growth. 

In contrast, several markets in the South and parts of California experienced price declines. Overall, 15 of the top 40 markets saw price increases of less than 1% or actual declines in August. Prices also fell in states like Florida and Texas, while 11 states — mostly in the Midwest and Northeast — recorded annual price gains above 5%. 

While final figures for August may adjust slightly as more sales are recorded, the preliminary data provides an early snapshot of ongoing trends in home price growth nationwide.