Home Prices Rise in Most U S Metros in Q3 as Tight Supply Keeps Values Moving Up

New data from the National Association of Realtors shows that most U.S. housing markets continued to see rising prices in the third quarter of 2025 — even though overall sales activity remained subdued. Out of 230 metro areas, 176 posted year-over-year price increases, meaning nearly 8 out of 10 markets still moved higher despite economic uncertainty and higher mortgage rates.
Nationwide, the median price for an existing single-family home reached $426,800, rising 1.7% from last year. While this matches Q2’s growth pace, the price acceleration is becoming more concentrated. Only 4% of metros saw double-digit gains, showing that the market is cooling but not correcting.
Regional differences remain wide. The Northeast led the nation with a 6% price increase thanks to extremely tight supply, while the Midwest posted a solid 4.2% gain supported by affordability and stable demand. In the South, price growth slowed dramatically to just 0.5% as new construction improved inventory. The West saw a slight 0.1% dip, reflecting a mild reset after years of steep appreciation.
Some metros saw standout growth, including Trenton, Lansing, Nassau–Suffolk, New Haven, and New York City, where prices surged between 8% and 10%. These increases stem largely from limited supply and strong buyer demand in affordable or strategically located markets.
High-cost coastal markets remained the most expensive in the nation. San Jose once again topped the list with a median price close to $1.9 million, followed by Anaheim, San Francisco, Honolulu, and San Diego — many of which saw only slight changes in pricing, showing how insulated these markets remain.
Affordability did improve slightly as mortgage rates eased from their peaks. The typical monthly payment on a median-priced home fell 2.8% from Q2, though it’s still higher than a year ago. For the average household, mortgage payments now consume 24.8% of income — a modest improvement but still elevated. First-time buyers face even bigger hurdles, with monthly payments on a starter home eating up more than 37% of income.
Overall, the Q3 numbers reveal a market caught between weak sales and firm pricing. People are buying fewer homes, yet values remain resilient because inventory is still too low. Until more supply comes into the market, home prices are likely to remain supported, even in a slower sales environment.
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