What happened to home prices in Q2 2025?
According to the home price data released today by the National Association of Realtors® (NAR), home prices were up in 170 out of 228 metro areas during the second quarter of 2025. The NAR also reported that the national median single-family existing-home price increased 1.7% from a year ago to a record high of $429,400.
Home prices rose in three out of four metro markets, the NAR report said, and the monthly mortgage payment on a typical single-family home with 20% down payment decreased 0.3% from the same time last year. The report stated that homes with those conditions had an average monthly payment of $2,256.
Where did home prices change the most in Q2 2025?
On a region-by-region basis, the U.S. housing market saw the following changes in home prices:
- Prices increased 6.1% in the Northeast
- Home prices were up 3.5% in the Midwest
- The West saw a 0.6% increase in home prices
- The South saw no change in home prices
"Home prices have been rising faster in the Midwest due to affordability, in the Northeast due to limited inventory,” NAR’s Chief Economist, Lawrence Yun, said. "The South region – especially Florida and Texas – is experiencing a price correction due to the increase in new home construction in recent years."
Which metros saw the largest changes in home prices?
Eight of the top 10 metro areas with the largest year-over-year increase in median home price increases were in the Midwest and Northeast, the NAR report said. The metro areas with the biggest changes were:
- Toledo, Ohio, up 10.5%
- Jackson, Mississippi, up 10.5%
- Nassau County-Suffolk County, New York, up 9.6%
- New Haven-Milford, Connecticut, up 9.0%
- Reading, Pennsylvania, up 8.3%
- Springfield, Missouri, up 8.2%
- Akron, Ohio, up 8.1%
- Montgomery, Alabama, up 7.9%
- Cleveland-Elyria, Ohio, up 7.8%
- Rochester, New York, up 7.8%
The same report also detailed the most expensive metro markets to purchase a single-family home. Of the top 10, eight of the most expensive metro areas for Q2 2025 were in California. San Jose-Sunnyvale-Santa Clara, California topped the list with an average home cost of $2,138,000, which is a year-over-year increase of 6.5%.
How about housing affordability in Q2 2025?
Prospective home buyers got some good news today. Although affordability has seen as a slight rise from last year, there has been a price decrease from Q2 2024.
The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $2,256, down 0.3% from the same time last year. However, it was an increase of 6.5% from 2025’s first quarter ($2,120).
Families typically spent 25.7% of their income on mortgage payments, up 1.3% from last quarter and down 1.2% from a year ago.
First-time homebuyers did see an increase in starter homes compared to Q1 2025, but a decrease compared to the same time last year. A typical starter home with a 10% down payment in Q2 2025 was valued at $365,000, the monthly mortgage payment rose $134 from last quarter to $2,212 this quarter. Which was down $6 from a year ago ($2,218).
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