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77 December 2025 J O U R N A L themortgagepoint.com December 2025 » Additionally, agents say that some prospective buyers are holding off on making a move until mortgage rates fall below 6%. "House hunters are sensitive to rates and prices; many are waiting for one or both to drop before buying," said W.J. Eu- lberg, a Redfin Premier agent in Milwau- kee. "But that's not always a great strategy. If mortgage rates come down significantly, there will be more bidding wars. And if prices drop, it will probably be because the economy has weakened and people are losing their jobs. For people who can afford a home now, they may consider jumping into the market while compe- tition is low and many sellers are willing to negotiate on price or offer concessions like funds to cover closing costs." MOST METRO AREAS SAW HOME-PRICE GAINS IN Q3 DESPITE SLUGGISH SALES H ome prices climbed across much of the country in Q3 of 2025, with an estimated 77% of metro markets (176 out of 230) posting year over year (YoY) gains, according to the National Association of Realtors' (NAR) latest quarterly report. That's up slightly from 75% in the previous quar- ter, showing continued, if uneven, price growth despite sluggish sales. Nationally, the average cost for an existing single-family home reached $426,800, up 1.7% from a year earlier, matching the annual growth rate from the second quarter. Although fewer markets saw double-digit increases (4%, compared with 5% last quarter), values remained elevated in many regions. Regional trends reflected ongoing differences in supply and demand. Prices jumped 6% in the Northeast to a median of $540,100 and rose 4.2% in the Midwest to $331,100. The South, where new home construction has been strongest, saw only a 0.5% increase to $372,800, while the West dipped slightly, down 0.1% to $633,900. "Home sales have struggled to gain traction, but prices continue to rise, contributing to record-high housing wealth," said Lawrence Yun, Chief Economist for NAR. He noted that the tight supply in the Northeast and affordability in the Midwest helped drive their stronger appreciation. Yun added that modest price drops in the South are likely temporary, calling them "a second-chance opportunity for those previously priced out of the market." Top 10 Large Markets With the Biggest YoY Median Price Increases 1. Trenton, NJ (+9.9%) 2. Lansing-East Lansing, MI (+9.8%) 3. Nassau County-Suffolk County, NY (+9.4%) 4. New Haven-Milford, CT (+9.0%) 5. New York-Jersey City-White Plains, NY-NJ (+8.1%) 6. Manchester-Nashua, NH (+8.0%) 7. St. Louis, MO-IL (+7.9%) 8. Bridgeport-Stamford-Norwalk, CT (+7.8%) 9. Toledo, OH (+7.7%) 10. Cleveland-Elyria, OH (+7.7%) Among large metros, Trenton, New Jersey, led price gains with a 9.9% in- crease, followed by Lansing-East Lansing, Michigan (+9.8%), and Nassau County– Suffolk County, New York (+9.4%). Other strong performers included New Haven, Connecticut (+9.0%), and New York–Jer- sey City–White Plains (+8.1%). At the high end, San Jose, California, remained the nation's most expensive market with a median price of just over $1.9 million, trailed by Anaheim ($1.4 million) and San Francisco (just over $1.3 million). Top 10 Most Expensive Markets 1. San Jose-Sunnyvale-Santa Clara, CA ($1,915,000; +0.8%) 2. Anaheim-Santa Ana-Irvine, CA ($1,400,000; +0.1%) 3. San Francisco-Oakland-Hayward, CA ($1,315,000; +0.5%) 4. Urban Honolulu, HI ($1,127,900; -0.9%) 5. Salinas, CA ($1,019,900; +6.3%) 6. San Diego-Carlsbad, CA ($1,009,500; 0.0%) 7. Los Angeles-Long Beach-Glendale, CA ($954,100; +0.7%) 8. Oxnard-Thousand Oaks-Ventura, CA ($935,700; -1.2%) 9. San Luis Obispo-Paso Robles, CA ($931,800; -1.9%) 10. Bridgeport-Stamford-Norwalk, CT ($844,900; +7.8%) Affordability saw a slight reprieve but remains strained. The monthly mortgage payment on a typical home with 20% down was $2,187, a 2.8% drop from the prior quarter but still 2.1% higher than a year ago. Families spent 24.8% of their income on mortgage costs, down from 25.6% last quarter. For first-time buyers, a typical starter home priced at $362,800 required a $2,146 monthly payment with 10% down, eating up 37.4% of income. That's a modest improvement from the previ- ous quarter, but 3still a steep climb for many trying to enter the market. "House hunters are sensitive to rates and prices; many are waiting for one or both to drop before buying." —W.J. Eulberg, Redfin Premier agent