In the first quarter of 2025, the U.S. housing market experienced widespread home price increases, with over 80% of metro areas reporting gains. Specifically, 189 out of 228 metropolitan regions (approximately 83%) saw a rise in single-family existing-home prices, according to the National Association of REALTORS® (NAR)
The national median price for existing single-family homes climbed 3.4% year-over-year, reaching $402,300. While this marks a continued upward trend, it represents a deceleration from the 4.8% increase observed in the previous quarter.Notably, 11% of the tracked metro areas experienced double-digit annual price growth, a slight decrease from 14% in the fourth quarter of 2024.
Regionally, the Northeast led with a 10.3% annual price increase, followed by the Midwest at 5.2%, the West at 4.1%, and the South at 1.3%. Despite the South accounting for the largest share of existing-home sales (44.9%), it recorded the slowest price appreciation. NAR Chief Economist Lawrence Yun attributed the South’s lag to increased housing inventory from new construction, which has moderated price growth.
Among individual metro areas, Syracuse, N.Y., experienced the highest annual price increase at 17.9%, bringing its median home price to $234,300. Other notable markets with significant gains included Montgomery, Ala. (16.1%), and Youngstown-Warren-Boardman, Ohio-Pa. (13.6%).
Conversely, approximately 17% of the metro areas tracked (38 markets) saw home prices decline in the first quarter, up from 11% in the previous quarter. However, Yun noted that some of these markets, such as Boise, Las Vegas, Salt Lake City, San Francisco, and Seattle, are showing signs of recovery, with expectations of price rebounds due to solid job growth and increased demand.
Mortgage rates during this period fluctuated between 6.63% and 7.04% for a 30-year fixed loan. Consequently, the monthly mortgage payment for a typical existing single-family home with a 20% down payment rose to $2,120, reflecting a 4.1% increase from the previous year.
In summary, while the pace of home price growth has moderated compared to previous quarters, the majority of U.S. metro areas continue to experience price increases, underscoring the resilience of the housing market amid varying regional dynamics.
