According to the latest quarterly report from the National Association of Realtors (NAR), home prices in the U.S. rose in 77% of metro markets (176 out of 230) during the third quarter of 2025 一 up from 75% Q2 of 2025. NAR found that 4% of metro areas recorded double-digit price gains in Q3, down slightly from 5% in Q2 of 2025. The national median single-family existing-home price grew 1.7% year-over-year to $426,800 一 the same annual growth rate recorded in Q2.
"Home sales have struggled to gain traction, but prices continue to rise, contributing to record-high housing wealth," said NAR Chief Economist Lawrence Yun.
Regionally, all but the West reported year-over-year increases in single-family home prices in Q3. In the West, the median existing single-family home price stood at $633,900, down just 0.1% year-over-year in Q3. The Northeast led the pack in YoY change, with a median-priced single-family home of $540,100 experiencing a 6% increase. In the Midwest, where a median-priced home sits at $331,100, a 4.2% increase was reported. And in the South, a median-priced home of $372,800 experienced a slight 0.5% year-over-year increase.
"Markets in the supply-constrained Northeast and the more affordable Midwest have generally seen stronger price appreciation,” added Yun. “Price declines are occurring mainly in southern states, where there has been robust new home construction 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."
The Affordability Factor
In terms of housing affordability 23% of the markets NAR covers experienced declining home prices, down slightly from 24% in Q2.
The average monthly mortgage payment on a typical existing single-family home with a 20% downpayment in Q3 stood at $2,187 in Q3, a 2.8% drop from Q2 2025, and a 2.1% increase year-over-year.
The average share of income that typical U.S. families spent on mortgage payments in Q3 was 24.8%, down from 25.6% reported in Q2, and down from 25.2% year-over-year.
For first-time buyers, the monthly mortgage payment for a typical starter home valued at $362,800 with a 10% downpayment was $2,146 in Q3, a $61 decrease from Q2, yet a $45 increase year-over-year.
Markets Reporting the Largest Q3 YoY Median Price Increases
Markets reporting the biggest Q3 gains in price year-over-year were scattered across the nation, with a focus in the northeast, including:
- Trenton, New Jersey (up 9.9% YoY)
- Lansing-East Lansing, Michigan (up 9.8% YoY)
- Nassau County-Suffolk County, New York (up 9.4% YoY)
- New Haven-Milford, Connecticut (up 9.0% YoY)
- New York-Jersey City-White Plains, New York-New Jersey (up 8.1% YoY)
- Manchester-Nashua, New Hampshire (up 8.0% YoY)
- St. Louis, Missouri-Illinois (up 7.9% YoY)
- Bridgeport-Stamford-Norwalk, Connecticut (up 7.8% YoY)
- Toledo, Ohio (up 7.7% YoY)
- Cleveland-Elyria, Ohio (up 7.7% YoY)
Top 10 Most Expensive Markets in Q3
- San Jose-Sunnyvale-Santa Clara, California ($1,915,000; up 0.8% YoY)
- Anaheim-Santa Ana-Irvine, California ($1,400,000; up 0.1% YoY)
- San Francisco-Oakland-Hayward, California ($1,315,000; up 0.5% YoY)
- Urban Honolulu, Hawaii ($1,127,900; down 0.9% YoY)
- Salinas, California ($1,019,900; up 6.3% YoY)
- San Diego-Carlsbad, California ($1,009,500; unchanged YoY)
- Los Angeles-Long Beach-Glendale, California ($954,100; up 0.7% YoY)
- Oxnard-Thousand Oaks-Ventura, California ($935,700; down 1.2% YoY)
- San Luis Obispo-Paso Robles, California ($931,800; down 1.9% YoY)
- Bridgeport-Stamford-Norwalk, Connecticut ($844,900; up 7.8% YoY)
