Kevin Sears President | Official website
Home prices increased in 73% of metropolitan areas across the United States during the fourth quarter of 2025, according to a new report from the National Association of Realtors (NAR). The figure represents 168 out of 230 metro markets and marks a slight decrease from the previous quarter, when 77% of metro areas saw price growth. The share of metro areas with double-digit price gains rose slightly to 5%, up from 4% last quarter.
The national median single-family existing-home price reached $414,900, a year-over-year increase of 1.2%. This is lower than the annual growth rate of 1.7% recorded in the third quarter.
Regional data showed varying trends: In the Northeast, the median price was $514,600, up by 5.5%; in the Midwest, it was $317,100, up by 4.3%; in the South, it stood at $367,300 with a marginal increase of 0.2%; and in the West, prices declined by 1.2% to $625,800.
“Home sales squeaked out a gain in the final quarter of 2025, helped by improving affordability conditions,” said NAR Chief Economist Lawrence Yun. “Mortgage rates fell, income growth outpaced home price growth, and the income required to buy a typical home declined.”
Yun also noted regional differences: “While most metro markets continue to see record-high housing wealth, some areas are experiencing home price declines. These declining markets are concentrated primarily in Florida and Texas, where robust supply and recent home construction are increasing competition among sellers to attract buyers.”
Among large markets with significant year-over-year median price increases were Mobile, Alabama (+13.7%), Canton-Massillon, Ohio (+9.8%), Nassau County-Suffolk County, New York (+9.6%), Montgomery, Alabama (+9.4%), and St. Louis (Missouri-Illinois) (+9.1%).
The ten most expensive markets included San Jose-Sunnyvale-Santa Clara ($1,920,000), Anaheim-Santa Ana-Irvine ($1,396,500), San Francisco-Oakland-Hayward ($1,305,000), Urban Honolulu ($1,142,100), San Diego-Carlsbad ($994,000), Salinas ($995,500), Los Angeles-Long Beach-Glendale ($939,700), Oxnard-Thousand Oaks-Ventura ($936,700), San Luis Obispo-Paso Robles ($917,100), and Nassau County-Suffolk County ($818,800).
Housing affordability improved modestly during this period. About one-quarter (25%) of markets experienced declining home prices—up from 23% last quarter. The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $2,057—a decrease of 5.7% from the previous quarter and down by 3.1% year over year.
On average nationwide families spent about 22.9% of their income on mortgage payments for these homes—down from both last quarter (24.5%) and last year (24.7%).
For first-time buyers purchasing starter homes valued at $352,700 with a 10% down payment—the monthly mortgage payment was $2,019; this amount decreased by $122 compared to last quarter and by $62 compared to last year. First-time buyers allocated an average of 34.6% of their income toward these payments—lower than both last quarter’s figure (37%) and last year’s (37.3%).
The National Association of Realtors functions as a leading trade association for real estate professionals across residential and commercial sectors https://www.nar.realtor/newsroom. The organization supports diversity within its membership and advocates for property rights while providing research resources such as quarterly reports on market trends https://www.nar.realtor/newsroom. It encompasses around 1,200 local boards along with state associations nationwide https://www.nar.realtor/newsroom.
Additional details—including data tables for metropolitan area prices—are available through NAR’s website or local Realtor associations.
