Homes.com Report: U.S. Home Price Growth Remained Muted at 2.4% in August as the Market Shifts Toward Buyers

Recent declines in mortgage rates and the growing inventory of homes for sale shape the housing outlook for late 2025

ARLINGTON, Va.--(BUSINESS WIRE)--Homes.com, a CoStar Group leading online residential marketplace, released a new report today analyzing home price trends in August (based on the data collected to date), including price trends across major metros and house types.

Preliminary price data show U.S. home price growth remained muted in August, with the national median home price rising just 2.4% year-over-year to $389,000. While this marks an increase of $9,000 from last August, prices remain below the June 2025 peak of $395,000. For the first eight months of 2025, home prices have grown only 3.5%, compared to a 7% increase during the same period in 2024.

The housing market continues to show signs of cooling as conditions shift toward a buyer’s market. Homebuying demand has been soft throughout the year, with inventory levels returning to pre-pandemic norms as homes remain on the market longer. Elevated mortgage rates have weighed on affordability, though recent declines—reaching 6.29% last week, the lowest since October 2024, could provide relief. If rates continue to ease and the labor market doesn’t weaken much further, affordability improvements may help stimulate demand in the months ahead.

Regional disparities remain pronounced. The Midwest leads the nation in price appreciation, with some metros posting gains of more than 7% year-over-year. In contrast, oversupplied markets in the South and highly unaffordable areas of California saw price declines. Of the top 40 largest markets, 15 recorded minimal growth of less than 1% or outright declines in August. At the state level, prices fell in Florida and Texas, while 11 states—primarily in the Midwest and Northeast—reported annual price growth exceeding 5%.

The data shared in this report could change slightly once all home sales are accounted for. Erika Ludvigsen, National Director of Residential Analytics at Homes.com, is available for interviews to provide insights on the data and the residential real estate market in general. For more information and insights on the latest home buying and selling market trends, visit Homes.com.

About Homes.com

Homes.com is the fastest-growing residential real estate marketplace and the second largest portal in the United States. Homes.com is a brand of CoStar Group (NASDAQ: CSGP), a global leader in commercial real estate information, analytics, and online marketplaces, which acquired the platform in 2021.

Homes.com is the first major U.S. real estate portal to focus first on helping homeowners and their agents leverage the marketing power of the internet to bring more potential buyers to their listings. Homes.com’s unparalleled content and search capabilities bring millions of buyers and sellers to the site where they can seamlessly connect with agents. On average, Homes.com’s Members are winning 60% more listings* because they offer the home sellers a real estate portal that works for them not against them.

The Homes.com Network reached an audience of 111 million average monthly unique visitors in the second quarter ending June 30, 2025.** Consumer brand awareness skyrocketed from 4% to 42% in a little over one year since CoStar Group launched the industry’s largest marketing campaign to date in February 2024, reintroducing the platform to the market. For more information, visit Homes.com.

*Based on internal analyses comparing Members to non-Members on Homes.com.

** Homes.com Network (which includes Homes.com, the Apartments Network, and the Land Network) average monthly unique visitors for the quarter ended June 30, 2025, according to Google Analytics.

About CoStar Group

CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.

CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; and Homes.com, the fastest-growing residential real estate marketplace. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible, STR, a global leader in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a leading residential property portal in the United Kingdom.

CoStar Group’s websites attracted over 141 million average monthly unique visitors in the second quarter of 2025, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.