U.S. home price growth has slowed sharply, increasing only 2.7% in April compared to 3.4% in March, the smallest rise in nearly two years. Rising supply and mortgage rates above 7% are cooling prices and weakening demand, especially among first-time buyers who now account for just 30% of sales. While some markets like Tampa and Dallas see price declines, others in the Midwest and Northeast continue to gain. Despite increased supply, housing remains underbuilt, helping prevent a major correction.