Florida Home Prices Ease With More New Homes

CHICAGO — Home prices kept climbing in most U.S. metros – about 75% – during the second quarter, but the share is slipping as signs of a market shift are under way, the National Association of Realtors® reported Tuesday.

Still, the national median single-family existing-home price rose to a record high in the second quarter – up 1.7% annually, reaching $429,400, NAR data shows. Prices remained more resilient in certain areas of the country. For example, home prices surged 6.1% in the second quarter annually in the Northeast and were up 3.5% in the Midwest.

“Home prices have been rising faster in the Midwest due to affordability, and the Northeast, due to limited inventory,” says Lawrence Yun, NAR’s chief economist. On the other hand, home prices rose more modestly in the West, up 0.6% annually from Q2 2024, and held flat in the South. States including Florida and Texas are seeing a “price correction due to the increase in new home construction in recent years,” Yun says.

Prices predicted to remain strong

About one in four major U.S. housing markets did see home prices fall in the second quarter – up from 17% of markets in the first quarter, NAR’s data shows. While some areas are experiencing price adjustments, NAR Chief Economist Lawrence Yun doesn’t view it as a lasting trend.

“Home sales and the homeownership rate are underperforming relative to job growth,” Yun says, noting that more than 7 million jobs have been added since the pre-COVID peak. “However, elevated mortgage rates have kept home sales below pre-COVID levels,” he says.

The homeownership rate has dropped by a full percentage point since early 2023. Yun says that if interest rates fall, pent-up home buyer demand could be unleashed, particularly in states with significant job growth in recent years, such as Idaho, Utah, the Carolinas, Florida and Texas.

NAR forecasts median home prices to rise just 1% by the end of 2025 before accelerating to a 4% gain in 2026.

10 metros with largest annual price gains

Several housing markets are outperforming the rest of the market, even posting double-digit price percentage increases in the second quarter. The following markets saw the biggest year-over-year median home price increases, according to NAR:

1. Toledo, Ohio: 10.5%
2. Jackson, Miss.: 10.5%
3. Nassau County-Suffolk County, N.Y.: 9.6%
4. New Haven-Milford, Conn.: 9%
5. Reading, Pa.: 8.3%
6. Springfield, Mo.: 8.2%
7. Akron, Ohio: 8.1%
8. Montgomery, Ala.: 7.9%
9. Cleveland-Elyria, Ohio: 7.8%
10. Rochester, N.Y.: 7.8%

Meanwhile, the 10 most expensive housing markets in the second quarter were:

1. San Jose-Sunnyvale-Santa Clara, Calif.: $2.14 million; up 6.5%
2. Anaheim-Santa Ana-Irvine, Calif.: $1.43 million; down 0.4%
3. San Francisco-Oakland-Hayward, Calif.: $1.43 million; down 1.6%
4. Urban Honolulu, Hawaii: $1.15 million; up 4.3%
5. San Diego-Carlsbad, Calif.: $1.03 million; down 2.4%
6. Salinas-Monterey, Calif.: $978,400; down 5.5%
7. Oxnard-Thousand Oaks-Ventura, Calif.: $958,100; up 3.3%
8. San Luis Obispo-Paso Robles, Calif.: $928,000; up 3.7%
9. Los Angeles-Long Beach-Glendale, Calif.: $879,900; up 2.9%
10. Boulder, Colo.: $859,500; down 3.2%

© 2025 National Association of Realtors® (NAR)