Kevin Sears President | Official website
Home prices increased in 77% of metropolitan areas across the United States during the third quarter of 2025, according to a new report from the National Association of REALTORS (NAR). Out of 230 metro markets analyzed, 176 experienced price growth, up from 75% in the previous quarter. The percentage of metro areas with double-digit price gains was 4%, a slight decrease compared to 5% in the second quarter.
The national median price for existing single-family homes rose by 1.7% year over year to $426,800. This annual growth rate is unchanged from the previous quarter.
Regionally, home prices varied. The Northeast saw a median price of $540,100, representing a 6% increase from last year. The Midwest reported a median price of $331,100, up by 4.2%. In the South, the median reached $372,800 with a modest increase of 0.5%. The West recorded a median price of $633,900, reflecting a slight decline of 0.1%.
NAR Chief Economist Lawrence Yun commented on current market conditions: "Home sales have struggled to gain traction, but prices continue to rise, contributing to record-high housing wealth," said Yun. "Markets in the supply-constrained Northeast and the more affordable Midwest have generally seen stronger price appreciation."
Yun also noted trends in southern states: "Price declines are occurring mainly in southern states, where there has been robust new home construction in recent years," he said. "Given the region’s faster job growth, these price drops should be viewed as temporary and as a second-chance opportunity for those previously priced out of the market."
Among large metro areas with significant annual increases in median home prices were Trenton, New Jersey (+9.9%), Lansing-East Lansing, Michigan (+9.8%), Nassau County-Suffolk County, New York (+9.4%), and New Haven-Milford, Connecticut (+9%). Other notable increases occurred in St. Louis (Missouri-Illinois), Toledo and Cleveland-Elyria (Ohio), Manchester-Nashua (New Hampshire), Bridgeport-Stamford-Norwalk (Connecticut), and New York-Jersey City-White Plains (New York-New Jersey).
The most expensive markets continued to be concentrated in California and Hawaii. San Jose-Sunnyvale-Santa Clara led with a median home price just under $2 million ($1,915,000). Anaheim-Santa Ana-Irvine followed at $1.4 million; San Francisco-Oakland-Hayward at $1.315 million; Urban Honolulu at about $1.13 million; and Salinas at just over $1 million.
Affordability metrics showed some relief for buyers compared to last quarter but remained elevated relative to last year overall:
- The typical monthly mortgage payment for an existing single-family home with a 20% down payment was $2,187—a decrease of 2.8% from Q2 but still up by 2.1% year over year.
- On average nationally, families spent about 24.8% of their income on mortgage payments for such homes—down from both last quarter and one year ago.
For first-time buyers purchasing starter homes valued at roughly $362,800 with a 10% down payment:
- Monthly payments averaged $2,146—a reduction from Q2 but higher than one year ago.
- First-time buyers spent about 37.4% of their income on mortgage payments—down slightly from earlier periods.
Additional details on metropolitan area pricing data can be found on NAR’s website: https://www.nar.realtor/research-and-statistics/housing-statistics/metropolitan-median-area-prices-and-affordability
The NAR notes that regional statistics may include rural or smaller metro areas not covered elsewhere in this report and that only annual comparisons are valid due to seasonality in real estate transactions.
"REALTOR" is identified as a registered collective membership mark designating members who adhere to NAR’s Code of Ethics.
A list detailing counties included within Metropolitan Statistical Area definitions is available through U.S Census Bureau documentation: https://www.census.gov/geographies/reference-files/time-series/demo/metro-micro/delineation-files.html
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