The U.S. housing market is demonstrating signs of a slowdown, as evidenced by the latest House Price Index figures released on November 25, 2025. In September, the year-over-year growth rate of the index stood at 1.7%, a notable decrease from August’s rate of 2.4%. This deceleration marks a significant shift in the housing market dynamics, reflecting moderated growth patterns compared to the same period last year.
This decrease in the House Price Index indicates a cooling off of the housing market, as the pace at which house prices are increasing is slowing down. Experts suggest that this could be attributed to various factors including higher interest rates, affordability issues, and a possible shift in consumer demand.
The transition from a 2.4% to a 1.7% growth rate year-over-year between August and September suggests that while the housing market continues to see price increases, the rate at which these increases are occurring is declining. As market analysts digest this updated data, it could potentially impact both home buyers and sellers who may need to adjust their expectations in a market exhibiting gradual changes in momentum.
