Home prices rose across the majority of metro markets in the first quarter, strengthening homeowner equity while affordability remained an ongoing challenge for buyers.
Seventy-one percent of 235 metro markets tracked saw home prices rise during the first quarter of this year, while slightly more than a dozen of the markets even recorded double-digit price gains, the National Association of REALTORS® reported Tuesday.
The national median single-family existing-home price rose to $404,300 in the first quarter, up by just 0.5% year over year.
While the percentage annual gains may be shrinking on home prices lately, the overall message remains the same: “Home prices continued to increase in many markets, boosting housing wealth for most homeowners,” says Lawrence Yun, NAR's chief economist.
Last month, NAR reported that recent price growth has helped the typical homeowner accumulate $128,100 in housing wealth over the past six years alone.
Lately, the Northeast has seen some of the highest gains, with home prices in the first quarter up about 5% annually, as housing shortages in the region continue to push prices higher. The Midwest, known for its greater affordability, followed with nearly 4% in annual home price increases in the first quarter. Metro areas like Akron, Ohio, led the nation for the highest jump in annual home prices in the first quarter, climbing 12%, NAR reports.
10 Markets With the Biggest Yearly Gains
The following metros saw the highest median price increases in the first quarter over the past year, according to NAR:
- Akron, Ohio: up 12% annually
- Anchorage, Alaska: up 10.4%
- Albany-Schenectady-Troy, N.Y.: up 9.3%
- Trenton, N.J.: up 9.2%
- Davenport-Moline-Rock Island, Iowa-Ill.: up 9.2%
- Canton-Massillon, Ohio: up 7.9%
- Milwaukee-Waukesha-West Allis, Wis.: up 7.7%
- St. Louis, Mo.-Ill.: up 7.4%
- Reading, Pa.: up 7.4%
- Rochester, N.Y.: up 7.2%
Affordability Woes Continue, But Rates Are Helping
Home buyers are facing steeper costs to get into homeownership, but lower mortgage rates may be helping to offset the higher home prices somewhat.
“Even though mortgage rates are higher than earlier this year, rates remain comfortably below last year's levels,” Yun says. “Lower mortgage rates will allow more potential buyers to qualify for and obtain a mortgage.” The 30-year fixed-rate mortgage has hovered in the low-to-mid 6% range, easing from the high 6% and nearly 7% rates a year ago.
Related: A Silver Lining Emerges With Mortgage Rates: Buyers Aren't Backing Down
The monthly mortgage payment on a typical existing single-family home, with a 20% down payment, averaged $1,979 in the first quarter—down from $140 a year ago, according to NAR's data.
The slight easing in payments may offer some relief to home buyers this spring. But affordability challenges persist as home prices in most markets remain elevated.
While most housing markets are still seeing prices hold firm, there are signs of moderation. About a quarter—or 27%—of markets in the first quarter reported price declines, up from 17% a year ago, NAR reports.
Still, conditions can vary widely from one market to another. For example, “a good number of markets in the South experienced price cuts over the past year but recorded the strongest job growth,” Yun noted when reporting the latest figures on contract signings. That combination should lead to stronger housing market activity in the South this year.
Pricing strategy is becoming critical for listings this spring, real estate pros say.
“Pricing is so key to go on the market right now,” says Sarah Scattini, a real estate pro with RE/MAX Prime Properties in Reno, Nev., and 2026 president of Nevada REALTORS®. “The market will dictate what you re going to get for your house. Homes that go on [the market] overpriced will just sit.”
Meanwhile, homes that are priced competitively and presented well are still drawing strong interest this spring, including multiple offers, sometimes above asking price, Scattini notes.
Regional Snapshot on Home Prices
Here's a closer look at the year-over-year change in median existing single-family home prices broken down by region:
- Northeast: $506,500, up 4.9% annually
- Midwest: $308,100, up 3.6%
- South: $362,300, up 0.2%
- West: $607,600, down by 2.9%
10 Most Expensive Markets in the First Quarter
- San Jose-Sunnyvale-Santa Clara, Calif.: $2.03 million, up 0.5% annually
- Anaheim-Santa Ana-Irvine, Calif.: $1.44 million, down 0.5%
- San Francisco-Oakland-Hayward, Calif.: $1.35 million, up 2.3%
- Urban Honolulu, Hawaii: $1.18 million, up 0.9%
- San Diego-Carlsbad, Calif.: $1.05 million, up 1.3%
- San Luis Obispo-Paso Robles, Calif.: $956,800, up 0.4%
- Oxnard-Thousand Oaks-Ventura, Calif.: $944,200, up 1.4%
- Salinas, Calif.: $943,500, down 1.2%
- Los Angeles-Long Beach-Glendale, Calif.: $858,500, down 0.5%
- Naples-Immokalee-Marco Island, Fla.: $845,000, down 2.3%
