Seventy-five percent of U.S. metro markets (170 out of 228) registered home price gains in the second quarter of 2025, according to the Metropolitan Median Area Prices and Affordability and Housing Affordability Index released recently by the National Association of Realtors (NAR).
This is down from 83 percent in the first quarter. Five percent of metro areas recorded double-digit price gains in the second quarter, down from 11 percent in the first quarter of 2025, the report said.
The national median single-family existing-home price grew 1.7 percent year-over-year to $429,400 — a record high. In the first quarter, the national median price increased 3.4 percent year-over-year.
The median existing single-family home price also grew year-over-year in three of the four major national regions. In the Northeast, the median price rose 6.1 percent to $527,200; in the Midwest, the median price was $328,800 (up 3.5 percent); in the West, the median price was $646,100 (up 0.6 percent); and in the South, the median price was unchanged at $376,300.
“Home prices have been rising faster in the Midwest, due to affordability, and the Northeast, due to limited inventory,” said Lawrence Yun, NAR chief economist. “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,” Yun said.
Other key findings in the NAR report are:
Housing affordability
• On the home affordability front, 24 percent of markets experienced declining home prices, which is up 17 percent from the previous quarter.
• The monthly mortgage payment on a typical existing single-family home with a 20 percent down payment is $2,256, a 6.5 percent increase over the previous quarter and a 0.3 percent decrease over last year.
• The average share of income typical families spent on mortgage payments was found to be 25.7 percent, up from 24.4 percent the previous quarter and down from 26.9 percent last year
• For first-time buyers, $2,212 is the average monthly mortgage payment for a typical starter home valued at $365,000 with a 10 percent down payment, up $134 from the first quarter, but down $6 year-over-year.