US housing prices grew twice as fast in the second quarter of 2025 as in the first three months of the year, as fewer megacities reported significant price increases and more markets recorded price declines, UNN reports with reference to Inman.
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But prices still rose to record high levels nationally, with the median price of an existing single-family home in the US rising 1.7% to $429,000, according to new data from the National Association of Realtors (NAR).
75% of US metropolitan markets recorded price increases in the second quarter compared to last year, according to NAR's median price and housing affordability index published on Tuesday. This is less than the 83% of markets in the first quarter.
5% of markets recorded double-digit price growth in the quarter, down from 11% in the first quarter.
"Housing prices are rising faster in the Midwest due to affordability, and in the Northeast due to limited inventory," said NAR Chief Economist Lawrence Yun. "The Southern region, especially Florida and Texas, is experiencing a price correction due to increased new home construction in recent years."
NAR data also shows that housing prices fell in 24% of markets, with five Florida markets showing the largest price declines. The price declines were led by Sarasota, Punta Gorda, and Naples.
Markets with the largest price increases are in the Midwest and Southeast Coast, according to NAR data, as buyers chasing affordable housing drove up prices the most.
"If interest rates fall, the strongest release of pent-up housing demand is likely to occur in states with significant employment growth in recent years, such as Idaho, Utah, the Carolinas, Florida, and Texas," Yun said.