Home prices climbed in 77 percent of metro areas during the third quarter of this year, up from 75 percent the previous quarter, the National Association of Realtors reported on Thursday.
The median single-family home price in the U.S. rose by 1.7 percent year over year to $426,800, matching the annual growth rate seen during the second quarter of 2025.
Just 4 percent of metros saw double-digit price gains during Q3 2025, down slightly from 5 percent in the second quarter. Meanwhile, 23 percent of metros experienced declining home prices.
By region, the Northeast saw the strongest gains, with annual home price growth of 6 percent to a median existing single-family home price of $540,100. In the Midwest, the median existing single-family home price was $331,100 (up 4.2 percent annually); in the South, it was $372,800 (up 0.5 percent annually); and in the West, it was $633,900 (down 0.1 percent annually).
Lawrence Yun | Chief economist at the National Association of Realtors
“Home sales have struggled to gain traction, but prices continue to rise, contributing to record-high housing wealth,” NAR Chief Economist Lawrence Yun said in a statement. “Markets in the supply-constrained Northeast and the more affordable Midwest have generally seen stronger price appreciation.”
Price declines were largely concentrated in Southern states, Yun added, in large part due to high construction rates in recent years.
“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,” Yun said.
The typical existing single-family home with a 20 percent down payment had a monthly mortgage payment of $2,187 during the third quarter of 2025. That payment was up 2.1 percent year over year, and down 2.8 percent from Q2 2025.
Typical American families spent 24.8 percent of their income, on average, on mortgage payments, down from 25.6 percent the previous quarter, and down from 25.2 percent the year before.
First-time buyers typically spent $2,146 on mortgage payments for starter homes valued at $362,800 with a 10 percent down payment. That payment was down $61 from the previous quarter, and up $45 year over year. The typical first-time buyer spent 37.4 percent of their income on mortgage payments, down from 38.6 percent in Q2 2025 and down from 38.1 percent the year before.
Large markets with the biggest annual median price increases
- Trenton, New Jersey (up 9.9 percent to $523,100)
- Lansing-East Lansing, Michigan (up 9.8 percent to $257,900)
- Nassau County-Suffolk County, New York (up 9.4 percent to $822,800)
- New Haven-Milford, Connecticut (up 9 percent to $438,200)
- New York-Jersey City-White Plains, New York-New Jersey (up 8.1 percent to $771,000)
- Manchester-Nashua, New Hampshire (up 8 percent to $595,600)
- St. Louis, Missouri-Illinois (up 7.9 percent to $302,400)
- Bridgeport-Stamford-Norwalk, Connecticut (up 7.8 percent to $844,900)
- Toledo, Ohio (up 7.7 percent to $214,500)
- Cleveland-Elyria, Ohio (up 7.7 percent to $248,400)
