Home prices continued their upward trend in the first quarter of 2025, with more than 80% of measured metropolitan areas reporting price increases, according to the latest quarterly report from the National Association of Realtors (NAR). Despite a slight decrease from the previous quarter, the data highlights the persistent strength in the housing market.
The report, released on May 8, 2025, indicates that 189 out of 228 metro areas, or 83%, experienced gains in single-family existing-home sales prices during the first three months of the year. This is a modest dip from the 89% recorded in the fourth quarter of 2024. The national median single-family existing-home price rose 3.4% from a year ago, reaching $402,300.
READ: Florida’s Untamed Trails: A Guide To The Best Off-Roading Adventures
While the vast majority of markets saw price growth, the pace of rapid appreciation slowed slightly. Twenty-six markets, representing 11% of those measured, posted double-digit annual price appreciation, down from 14% in the prior quarter.
“Most metro markets continue to set new record highs for home prices,” stated Lawrence Yun, NAR Chief Economist. He noted that the Northeast region showed the strongest performance in both sales and price gains by percentage in the first quarter, while the South, despite robust job growth, saw declining sales and minimal price appreciation.
Regionally, the Northeast led with a significant 10.3% increase in prices year-over-year. The Midwest and West also saw solid gains of 5.2% and 4.1%, respectively. The South, which accounted for the largest share of existing-home sales at 44.9%, recorded a more modest 1.3% price increase.
Among the large markets (defined as the 150 most populous areas), several saw notable double-digit price surges. The top performers included Syracuse, N.Y. (17.9%), Montgomery, Ala. (16.1%), and Youngstown-Warren-Boardman, Ohio-Pa. (13.6%). New York and Ohio each had six markets among the top 10 large markets with the biggest year-over-year price increases.
READ: California Bill Proposed To Allow College Students To Live In Their Cars Amid Housing Crisis
California continued to dominate the list of most expensive markets, with eight of the top 10 located in the state. San Jose-Sunnyvale-Santa Clara, Calif., held the top spot with a median price of $2,020,000, representing a 9.8% annual increase. Other expensive markets included Anaheim-Santa Ana-Irvine, Calif. ($1,450,000) and San Francisco-Oakland-Hayward, Calif. ($1,320,000).
Yun commented on the high prices in certain areas, suggesting they partly reflect “multiple years of home underproduction in those metro markets.” He also linked high prices to lower homeownership rates and more unequal wealth distribution in those areas, contrasting them with more affordable markets that tend to have adequate supply and higher homeownership rates.
Conversely, the number of markets experiencing home price declines increased slightly in the first quarter, with 38 out of 228 (17%) reporting decreases, up from 11% in the fourth quarter of 2024. However, Yun pointed out that some markets that saw price declines a year or two ago, such as Boise, Las Vegas, and Seattle, are now rebounding. He also suggested that markets currently experiencing declines but with strong job growth, like Austin and many Florida markets, could see prices recover in the near future.
READ: Jonathan Turley: Trump’s Real Estate Career Taught Him Valuable Lessons As He Fights Federal Judges
Housing affordability saw a marginal improvement in the first quarter. The monthly mortgage payment for a typical existing single-family home with a 20% down payment was $2,120, a slight decrease from $2,122 in the previous quarter but up 4.1% ($84) from a year ago. Families typically allocated 24.4% of their income to mortgage payments, down from 24.8% in the prior quarter.
For first-time buyers, affordability also slightly improved. The monthly mortgage payment for a typical starter home valued at $342,000 with a 10% down payment was $2,079, a minimal decrease from the prior quarter but a 4.1% increase from a year ago. First-time buyers typically spent 36.8% of their family income on mortgage payments, down from 37.4% in the previous quarter.
The report also indicated that a family needed a qualifying income of at least $100,000 to afford a 10% down-payment mortgage in 45.1% of markets, an increase from 43.8% in the prior quarter. Conversely, a family needed a qualifying income of less than $50,000 to afford a home in 3.1% of markets, up from 2.2% in the previous quarter.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.
