Home Sales Prices Climb—and Reach All-Time Highs in One City

Annual home price growth accelerated in December for the second straight month, and prices hit an all-time high in one Northeastern city, showing that valuations remain surprisingly resilient.

Nationwide, home prices grew 3.9% in December from a year earlier, more than the 3.8% gain recorded in November, according to the latest S&P CoreLogic Case-Shiller Index data released Tuesday.

The Northeast continued to lead all regions in growth, and home prices reached an all-time high in Boston, the only market where they did so for the three-month period that ended in December.

New York again reported the highest annual gain among the 20 largest cities, with a 7.2% increase in December, followed by Chicago, with 6.6%; and Boston, at 6.3%. Tampa, FL, posted the lowest return, with prices falling 1.1% annually.

“Regional variation in the housing market means that buyers across the country face vastly different market conditions,” says Realtor.com® Senior Economic Research Analyst Hannah Jones. “Markets in the Midwest and Northeast continued to see substantial demand, resulting in sustained price growth in December, while the South and West continued to soften.”

The index’s composite of home prices in the 20 largest metro areas posted a year-over-year increase of 4.5%, up from a 4.3% increase in the previous month.

The continued expansion of home prices came in defiance of sluggish home sales, which were at a near 30-year low in 2024, as high mortgage rates and affordability concerns pushed many buyers to the sidelines.

Mortgage rates for 30-year fixed loans averaged 6.72% across December, up from the two-year low of 6.18% in September, according to Freddie Mac.

“Despite some downward progress early in the month, mortgage rates climbed through December, ending the year near 6.9%,” says Jones. “Rates have remained at or above 6.85% since late December, and this recent climb in rates is likely to weigh on buyer demand through early 2025.” 

Pandemic disruptions continue to be felt in home prices

Recent home price trends show that the big Northeastern cities that suffered most during the depths of the COVID-19 pandemic are now enjoying a rebound, while former pandemic boomtowns such as Tampa and Phoenix, are lagging behind.

“It has been five years since the COVID-19 outbreak took hold of the global economy, sparking
unprecedented volatility, massive fiscal and monetary stimulus, and a housing market that responded
to national migratory changes in how we work and where we live,” says Brian D. Luke, head of
commodities, real and digital assets at S&P Dow Jones Indices.

“National home prices have risen by 8.8% annually since 2020, led by markets in Florida, North Carolina, Southern California, and Arizona,” he says.

While home price growth as measured by the Case-Shiller index continues to outpace inflation, it is now far below the peak appreciation of 18.9% observed in 2021 and lags behind the historical average of the index, Luke notes.

“Home prices stalled during the second half of the year with markets in the West dropping the fastest,” he says.

San Francisco, the worst-performing market since 2020, saw home prices drop 4.5% during the latter half 2025, followed by Seattle with a 3% decline.

Home prices in San Francisco are now 11% lower than the all-time high they reached in May 2022.

Previous pandemic winners like San Diego and Tampa also experienced declines of 2.9% and 2.7%, respectively, during the second half last year.