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Three out of Four Metro Areas Posted Home Price Increases in Second Quarter of 2025
press release, National Association of Realtors
   

Seventy-five percent of metro markets (170 out of 228) registered home price gains in the second quarter of 2025, according to the National Association of REALTORS®' Metropolitan Median Area Prices and Affordability and Housing Affordability Index. This is down from 83% in the first quarter. Five percent of metro areas recorded double-digit price gains in the second quarter, down from 11% in the first quarter of 2025.

The national median single-family existing-home price grew 1.7% year-over-year to $429,400 – a record high. In the first quarter, the national median price increased 3.4% year-over-year.

Median existing single-family home price by region (year-over-year change)

  • Northeast: $527,200 (+6.1%)
  • Midwest: $328,800 (+3.5%)
  • West: $646,100 (+0.6%)
  • South: $376,300 (No change)

"Home prices have been rising faster in the Midwest, due to affordability, and the Northeast, due to limited inventory," said NAR Chief Economist Lawrence Yun. "The South region – especially Florida and Texas – is experiencing a price correction due to the increase in new home construction in recent years."

"Home sales and the homeownership rate are underperforming relative to job growth," added Yun. "There have been over 7 million net job additions compared to the pre-COVID peak. However, elevated mortgage rates have kept home sales below pre-COVID levels. The homeownership rate has fallen by a full percentage point since early 2023."

"If interest rates decline, the strongest release of pent-up housing demand is likely to occur in states with significant job growth in recent years, such as Idaho, Utah, the Carolinas, Florida, and Texas."

10 large markets with biggest year-over-year median price increases

  1. Toledo, Ohio (10.5%)
  2. Jackson, Miss. (10.5%)
  3. Nassau County-Suffolk County, N.Y. (9.6%)
  4. New Haven-Milford, Conn. (9.0%)
  5. Reading, Pa. (8.3%)
  6. Springfield, Mo. (8.2%)
  7. Akron, Ohio (8.1%)
  8. Montgomery, Ala. (7.9%)
  9. Cleveland-Elyria, Ohio (7.8%)
  10. Rochester, N.Y. (7.8%)

10 Most expensive markets

  1. San Jose-Sunnyvale-Santa Clara, Calif. ($2,138,000; 6.5%)
  2. Anaheim-Santa Ana-Irvine, Calif. ($1,431,500; -0.4%)
  3. San Francisco-Oakland-Hayward, Calif. ($1,426,000; -1.6%)
  4. Urban Honolulu, Hawaii ($1,148,600; 4.3%)
  5. San Diego-Carlsbad, Calif. ($1,025,000; -2.4%)
  6. Salinas-Monterey, Calif. ($978,400; -5.5%)
  7. Oxnard-Thousand Oaks-Ventura, Calif. ($958,100; 3.3%)
  8. San Luis Obispo-Paso Robles, Calif. ($928,000; 3.7%)
  9. Los Angeles-Long Beach-Glendale, Calif. ($879,900; 2.9%)
  10. Boulder, Colo. ($859,500; -3.2%).

Housing affordability

  • 24% of markets experienced declining home price
    • Up from 17% last quarter
  • $2,256: monthly mortgage payment on a typical existing single-family home with a 20% down payment
    • 6.5% increase quarter-over-quarter
    • 0.3% decrease year-over-year
  • 25.7%: average share of income typical families spent on mortgage payments
    • Up from 24.4% last quarter
    • Down from 26.9% last year

First-time buyers

  • $2,212: the monthly mortgage payment for a typical starter home valued at $365,000 with a 10% down payment
    • $134 increase from Q1
    • $6 decline year-over-year
  • 38.7%: share of income first-time buyers spent on monthly mortgage payments
    • Up from 36.8% in Q1
    • Down from 40.6% year-over-year

About the National Association of REALTORS®

The National Association of REALTORS® is involved in all aspects of residential and commercial real estate. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics. For free consumer guides about navigating the homebuying and selling transaction processes – from written buyer agreements to negotiating compensation – visit facts.realtor.



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