U.S. home prices rose 4% between the first quarter of 2024 and the first quarter of 2025, according to the Federal Housing Finance Agency’s (FHFA) 2025 Q1 Housing Price Index report. This marks a continued positive annual appreciation each quarter since early 2012.
Nationally, house prices were up 0.7% compared to the fourth quarter of 2024, though the FHFA’s seasonally adjusted monthly index for March showed a slight decrease of 0.1% from February. The Quad Cities-based Ruhl&Ruhl Realtors shared the report in a news release Friday, July 11.
In the Midwest region, the five-year home appreciation was robust, ranging from 35.86% to 44.22%, with all regional Metropolitan Statistical Areas (MSAs) experiencing positive gains.
Looking at the past year, home prices in specific markets saw varying increases: Cedar Rapids, Iowa, 0.34%; the Quad Cities, 2.80%; Dubuque, Iowa, 6.12%; Iowa City, 8.29%; and Waterloo-Cedar Falls, Iowa, 3.72%. For comparison, Des Moines experienced a 2.52% increase, and Chicago saw a 6.63% rise. Appreciation trends indicate that more affordable homes are often seeing stronger gains due to higher demand and tighter supply, while higher-end properties tend to appreciate at a slower pace, the index shows.
More homes, options
“After several years of rapid gains, home price growth has leveled off to a more sustainable pace across our region,” said Chris Beason, president of Ruhl&Ruhl Realtors. “We’re seeing more homes on the market, giving buyers more options, while demand remains strong, particularly in the more affordable price points.”
He added that this is leading to a more balanced market, “where prices are rising modestly or holding steady. Buyers aren’t as rushed, and sellers are still seeing great value. With stable conditions and strong affordability, we expect this healthy market to continue through 2025.”
Ruhl&Ruhl credited information for this report to the Federal Housing Finance Agency (FHFA) for the first quarter of 2025. FHFA statistics are always released one quarter behind. Its full report is available at www.fhfa.gov.
