U
S home price growth slowed to 2.5% in March, down from 2.9% in February, as consumer anxiety over finances and trade-related tariffs weighed on the housing market. The national median home price continued to rise, driven by strong gains in the Northeast, where states like Rhode Island, Connecticut, and New Jersey saw prices increase by 7% or more year-over-year.

    In contrast, some western states experienced declining prices, with Utah and Idaho reporting drops of 2.1% and 2.2%, respectively. Georgia hit a new record-high home price in March, driven by an influx of new residents into the Southeastern US. However, neighboring Florida showed signs of market stress, posting a slight statewide price decline of 0.3%.

    According to Cotality's Chief Economist Selma Hepp, certain markets are showing remarkable resilience, particularly in the Northeast and Midwest, where low inventory is keeping upward pressure on prices. Rising mortgage rates, increased living costs, and swelling inventories are driving shifts in housing market dynamics, visible in states like Florida and Texas, which have seen significant price surges since the pandemic.

    In Florida, eight out of 11 major housing markets saw annual price declines last month, highlighting a growing divide between resilient regions and those struggling with economic headwinds and overvaluation.