Seventy-six of the 100 largest metros saw price appreciation over the previous four quarters

House prices in the United States rose 2.2% year-over-year through the third quarter of 2025, marking another quarter of steady appreciation, according to Federal Housing Finance Agency data released Tuesday.

The modest quarter-over-quarter increase of 0.2% suggests the market is maintaining equilibrium as it heads into year-end.

"The U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012," the FHFA noted in its latest House Price Index report.

The gains reflect divergent regional trends. Forty-four states and the District of Columbia posted year-over-year increases, with Illinois leading at 6.9%, followed by New York at 6.8% and North Dakota at 6.3%.

However, six states experienced declines, with Florida down 2.3%, the steepest drop nationally.

Metropolitan areas showed similar variation. Allentown-Bethlehem-Easton, Pa.-N.J., posted the strongest growth at 9.7%, while Cape Coral-Fort Myers, Fla., experienced the deepest decline at 10.8%.

The Middle Atlantic census division led regional appreciation at 5.7% year-over-year, while the Pacific division posted a marginal 0.1% decline, the only major region failing to achieve positive growth.

The FHFA's comprehensive index tracks single-family home values across all 50 states and more than 400 American cities, drawing from tens of millions of home sales dating back to the mid-1970s.

While national appreciation remains steady, the divergence between high-growth northeastern markets and struggling Sunbelt metros underscores the importance of localized market analysis for mortgage professionals managing portfolio risk and origination strategy.