How have home values changed in 2025?
Whether you are looking to buy a home or trying to determine the worth of your current home, you will want to know how 2025 affected the value of homes.
As of September 2025, the median price of homes sold in the U.S. is $435,495. This is up 1.8% from the same time a year earlier. The number of homes sold is 438,289, up 6.4% from September 2024.
Regional and metro highlights
Not all places saw an increase in home prices, however. Depending on where you live, the value of your home might have seen a slight drop. And some areas saw a larger increase in their home’s value compared to the national average.
Let’s take a look at a few cities that have seen the biggest increases and a few decreases in home values compared to last year.
Cities with an increase in home value year over year:
- New York, New York: 7%
- Chicago, Illinois: 6.1%
- Cleveland, Ohio: 4.5%
- Boston, Massachusetts: 4.3%
- Detroit, Michigan: 4.3%
Cities with a decline in home values year over year:
- Tampa, Florida: -2.4%
- San Francisco, California: -2%
- Dallas, Texas: -1%
- San Diego, California: -0.6%
- Denver, Colorado: -0.3%
What’s driving these changes?
There are minor factors that can drive changes in your specific home’s value and major things that can affect the overall value of homes in the nation.
Some minor factors include the area or location and upgrades or repairs. If your home is in an area where school districts are getting better or location where the job market is growing, you may see an increase in your home’s value. Making upgrades to a home could appeal to buyers, which could also raise your home’s value.
Major factors that can affect home values across the country are current mortgage rates, the amount of inventory on the housing market and the strength of the job market.
The lower the mortgage rates, the more potential homebuyers enter the housing market, which could increase the amount your home is sold for.
Similarly, the value of your home will go up and down with the number of homes on the market. A strong job market could lead to more people entering the housing market and a higher demand for homes, increasing prices.
How to estimate your home’s current value
You can estimate the current value of your home through an online valuation estimator or appraiser.
A valuation estimator is a complimentary tool that uses your address to search through millions of records and databases to give you an estimate of your home’s value. The valuation tool looks through records to find information on the address provided and the prices of homes sold recently in the area, as well as the price of the property when it last sold. All of this information is used to give you a proper high and low estimate of your home’s worth.
If you are looking for a more in-depth evaluation of your home, you can hire a professional appraiser. An appraiser will walk through your home, taking notes and photos as they go. Appraisers look at size, condition and any unique features in your home before doing research to see comparable properties in the area and estimate the value of your home.
Why should you know your home’s value?
If you have a mortgage, knowing your home’s value can help you figure out whether the equity in your home has grown.
Your home equity will increase with each mortgage payment you make, as well as any property and home upgrades. If your property value has increased since purchasing, your equity should increase as well.
Curious to see how much equity you’ve built? Talk to a Loan Officer to explore your options.
What to do with your equity
Accessing your home’s equity can get you funds you can use for a variety of reasons. Two of the practical applications homeowners tend to use their equity for are renovations and debt consolidation*.
Reinvesting your home’s equity through renovations can be an investment, as some renovations could increase the property’s value and the equity in your home.
If you have lingering debt from credit cards and other obligations, you could use the funds from tapping into your home equity to consolidate them into one monthly payment.
Popular ways homeowners access their home’s equity is through a cash-out refinance, home equity loan and HELOC**.
Looking ahead to 2026
With 2025 coming to a close, it is time to look at what’s ahead for homes in 2026. While no one can tell you exactly what 2026 will look like, it is shaping up to start as a good year for homebuyers.
With mortgage rates currently at their lowest this year and speculation that the Federal Reserve might cut interest rates once more before the end of the year, it is looking like mortgage rates may be at the right place for new homebuyers entering the market.
If you hope to buy a home next year, you can get started by applying for a pre-approval. A pre-approval will show you what type of mortgage you could qualify for as well as what your rates and loan amount will be. Pre-approvals typically last for three to six months, meaning that they will last you into the new year.
If you do not qualify for the loan or rates you were hoping for, you can talk to a Loan Officer to find out what you need to do to qualify before applying again at the start of next year.
Begin your mortgage pre-approval today and be prepared for homebuying in 2026.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate Affinity does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate Affinity. Guaranteed Rate Affinity its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
*Using funds from a Cash-out Refinance to consolidate debt may result in the debt taking longer to pay off as it will be combined with borrower’s mortgage principle amount and will be paid off over the full loan term. Contact Guaranteed Rate Affinity for more information.
**Guaranteed Rate Affinity home equity line of credit (HELOC) is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw. This product is currently not offered in the states of New York, Kentucky, West Virginia, Delaware and Maryland. The HELOC requires you to pledge your home as collateral, and you could lose your home if you fail to repay. Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone. Borrowers must meet minimum lender requirements in order to be eligible for financing. Available for primary, second homes and investment properties only. Dependent on minimum credit score and debt-to-income requirements. Occupancy status, lien position and credit score are all factors to determine your rate and max available loan amount. Not all applicants will be approved. Applicants subject to credit and underwriting approval. Contact Guaranteed Rate Affinity for more information and to discuss your individual circumstances. Restrictions Apply.