80% of Metro Markets Had Home Price Increases in Q1

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80% of Metro Markets Had Home Price Increases in Q1

Washington, DC, May 8, 2025-More than 80% of metro markets (189 out of 228, or 83%) registered home price gains in the first quarter of 2025, as the 30-year fixed mortgage rate ranged from 6.63% to 7.04%, according to the National Association of Realtors' latest quarterly report. Eleven percent of the 228 tracked metro areas recorded double-digit price gains over the same period, down from 14% in the fourth quarter of 2024.

"Most metro markets continue to set new record highs for home prices," said NAR chief economist Lawrence Yun. "In the first quarter, the Northeast performed best in both sales and price gains by percentage. Despite the stronger job additions, the South lagged with declining sales and virtually no price appreciation."

Compared to one year ago, the national median single-family existing-home price grew 3.4% to $402,300. In the prior quarter, the year-over-year national median price increased 4.8%.

Among the major U.S. regions, the South registered the largest share of existing-home sales (44.9%) in the first quarter, with year-over-year price appreciation of 1.3%. Prices also increased 10.3% in the Northeast, 5.2% in the Midwest and 4.1% in the West.1

The top ten large markets (where large markets are defined as the 150 most populous areas) with the biggest year-over-year median price increases by percentage all experienced gains of at least 10%. A total of six markets were in New York and Ohio. Overall, those top ten large markets were Syracuse, New York (17.9%); Montgomery, Alabama (16.1%); Youngstown-Warren-Boardman, Ohio-Pennsylvania (13.6%); Nassau County-Suffolk County, New York (12.0%); Toledo, Ohio (11.1%); Cleveland-Elyria, Ohio (11.1%); Rochester, New York (11.1%); Gulfport-Biloxi-Pascagoula, Mississippi (10.5%); Trenton, New Jersey (10.4%); and Allentown-Bethlehem-Easton, Pennsylvania-New Jersey (10.2%).

Eight of the top ten most expensive markets in the U.S. were in California. Those markets were San Jose-Sunnyvale-Santa Clara, California ($2,020,000; 9.8%); Anaheim-Santa Ana-Irvine, California ($1,450,000; 6.2%); San Francisco-Oakland-Hayward, California ($1,320,000; 1.5%); Urban Honolulu, Hawaii ($1,165,100; 7.3%); San Diego-Carlsbad, California ($1,036,500; 5.7%); Salinas, California ($954,700; 6.2%); San Luis Obispo-Paso Robles, California ($953,400; 4.8%); Oxnard-Thousand Oaks-Ventura, California ($931,500; 2.5%); Naples-Immokalee-Marco Island, Florida ($865,000; 1.8%); and Los Angeles-Long Beach-Glendale, California ($862,600; 4.8%).

"Very expensive home prices partly reflect multiple years of home underproduction in those metro markets," Yun added. "Another factor is the low homeownership rates in these areas, implying more unequal wealth distribution. Affordable markets tend to have more adequate supply and higher homeownership rates."

Nearly 17% of markets (38 of 228) posted home price declines in the first quarter, up from 11% in the fourth quarter of 2024.

"A few areas where home prices declined a year or two ago are now rebounding, including Boise, Las Vegas, Salt Lake City, San Francisco and Seattle," Yun said. "Similarly, some markets currently experiencing price declines – but with solid job growth – could see prices recover in the near future, such as Austin, San Antonio, Huntsville, Myrtle Beach, Raleigh and many Florida markets."

Housing affordability slightly improved in the first quarter. The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $2,120, down only $2 from the fourth quarter of 2024 ($2,122) but up 4.1% – or $84 – from one year ago. Families typically spent 24.4% of their income on mortgage payments, down from 24.8% in the prior quarter and 24.5% one year ago.

First-time buyers found marginally better affordability circumstances compared to the previous quarter. For a typical starter home valued at $342,000 with a 10% down payment loan, the monthly mortgage payment declined to $2,079, down just $2 from the prior quarter ($2,081). That was an increase of $82, or 4.1%, from one year ago ($1,997). First-time buyers typically spent 36.8% of their family income on mortgage payments, down from 37.4% in the previous quarter.

A family needed a qualifying income of at least $100,000 to afford a 10% down-payment mortgage in 45.1% of markets, up from 43.8% in the prior quarter. Yet, 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.