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By Giulia Carbonaro
Senior Reporter
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Home prices climbed in 75 percent of U.S. metropolitan areas in the second quarter of 2025 compared to a year earlier, according to a new report by the National Association of Realtors (NAR).
These increases are happening even as inventory surges across the country and demand is made sluggish by historically elevated mortgage rates, sky-high prices, and growing economic uncertainty.
But the latest figures show a slowdown in the pace of price growth across the country. In the first quarter of the year, as many as 83 percent of U.S. metros reported annual increases in home prices—8 percent more than in the second quarter. Only 5 percent of metros reported double-digit increases between April and June, down from 11 percent between January and March.
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What Is Happening in the US Housing Market?
Home prices have skyrocketed all across the country since the pandemic, when a homebuying frenzy unleashed by low mortgage rates clashed with a chronic lack of inventory. The median sale price of a typical U.S. home was $446,766 in June, according to Redfin, up 1 percent from a year earlier, but 44 percent from June 2020.
While there is still a significant shortage of homes compared to what Americans would need, inventory has been growing in recent months. There are now over 2 million homes for sale nationwide.
This recent surge happened partly because more sellers stopped waiting for mortgage rates to go down and returned to the market this year, and partly because many of these listings are taking longer to sell or are remaining unsold due to the ongoing affordability challenges faced by buyers.
The current imbalance between sellers and buyers in the U.S. market is putting downward pressure on home prices. Even if they have not significantly come down yet—at least not at the national level—buyers have acquired more negotiating power and sellers are being forced to slash prices to make their properties more attractive.
Where Have Home Prices Climbed the Most, and Why?
Despite the current dynamics at play in the U.S. housing market, there are still markets that are resisting the price correction that is already ongoing in places like Austin, Texas, or Tampa, Florida, which became particularly overheated during the pandemic.
"Home prices have been rising faster in the Midwest, due to affordability, and the Northeast, due to limited inventory," said NAR Chief Economist Lawrence Yun in the report. "The South region—especially Florida and Texas—is experiencing a price correction due to the increase in new home construction in recent years."
These are the top 10 U.S. metropolitan statistical areas (MSA) with the biggest year-over-year median price increases for single-family homes in the country as of the second quarter of the year:
- Toledo, Ohio (10.5 percent)
- Jackson, Mississippi (10.5 percent)
- Nassau County-Suffolk County, New York (9.6 percent)
- New Haven-Milford, Connecticut (9 percent)
- Reading, Pennsylvania (8.3 percent)
- Springfield, Missouri (8.2 percent)
- Akron, Ohio (8.1 percent)
- Montgomery, Alabama (7.9 percent)
- Cleveland-Elyria, Ohio (7.8 percent)
- Rochester, New York (7.8 percent)
In some of these cities, prices are growing because the supply of homes for sale remains limited. In others, like Toledo, prices are shooting up as a result of increased demand due to their relative affordability.
At the national level, the median single-family home price grew 1.7 percent year-over-year in the second quarter of the year to $429,400. It was a record high, even as the pace of this growth slowed down significantly from the first quarter of the year, when the median single-family home price was up by 3.4 percent from 2024.
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