Only 25% of metros saw the median home price go down

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Seventy-five percent of metro housing markets saw home price gains in Q2 2025, down from 83% in Q1, according to the National Association of Realtors.
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The national median single-family existing-home price hit a record $429,400, up 1.7% year-over-year but slower than Q1s 3.4% rise.
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Housing affordability worsened quarter-over-quarter, with typical families spending 25.7% of income on mortgage payments.
The U.S. housing market reached a new milestone in the second quarter of 2025, with the national median single-family existing-home price climbing to $429,400 the highest on record.
The data from the National Association of Realtors show prices were up 1.7% from a year earlier, a slower pace than the 3.4% annual increase recorded in the first quarter. Despite the record, market momentum cooled slightly.
Just 75% of metro areas (170 out of 228) posted year-over-year price gains in the second quarter, down from 83% in the first quarter. However, that comes amid slowing sales caused by the record-high prices and mortgage rates that have returned to normal. Under those circumstances, home prices should be going down.
The fact that the median home price continues to rise may be explained by who is buying homes. It appears to be people who can afford the more expensive homes, while moderate-income consumers remain on the sidelines.
Still, only 5% of metros saw double-digit price appreciation, less than half the rate from earlier this year.
Regional trends
Price growth varied widely by region:
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Northeast: $527,200 (+6.1%)
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Midwest: $328,800 (+3.5%)
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West: $646,100 (+0.6%)
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South: $376,300 (unchanged)
NAR Chief Economist Lawrence Yun pointed to strong buyer demand in the Midwest, driven by relative affordability, and to supply constraints in the Northeast. By contrast, the South particularly Florida and Texas is seeing price corrections amid a surge in new home construction.
The largest annual gains came from Toledo, Ohio (+10.5%), Jackson, Miss. (+10.5%), and Nassau-Suffolk, N.Y. (+9.6%).
The priciest markets remained concentrated in California and Hawaii, led by San Jose-Sunnyvale-Santa Clara at $2.14 million, up 6.5% from last year.
Posted: 2025-08-12 14:38:37