The housing market appears to be showing signs of slowing down, with around 73% of metropolitan areas still witnessing positive price increases, particularly in the last quarter of 2025.
Some regions, like Cape Girardeau in Missouri, experienced the fastest year-over-year price growth, hitting a remarkable 19.9% increase, with a median home price around $275,000. This is according to fresh data from the National Association of Realtors.
Cumberland, Maryland follows, showing a 17.1% increase, and the median price there sits at $174,900. Owensboro, Kentucky also reported a 15% rise, with homes averaging $264,000.
Nationally, the median price climbed 1.2% to $414,900 in the final quarter of 2025. Interestingly, monthly mortgage payments for single-family homes declined by 5.7%, now averaging $2,057.
These cities are priced significantly lower than the national median, making them more accessible for average homebuyers.
“To reach the 30% affordability threshold for a typical home, households would need annual incomes of $53,320 in Cape Girardeau, $33,920 for Cumberland and Owensboro in West Virginia, and $51,360 for Owensboro, Kentucky,” explained Jiayi Xu, an economist at Realtor.com.
This figure is calculated with a 20% down payment for first-time buyers, based on an average 30-year mortgage rate of 6.1%. Taxes and insurance aren’t included, which, you know, could be important.
On the flip side, some areas have seen price drops, notably Elmira, New York (-7.2%), Farmington, New Mexico (-7%), and Boulder, Colorado (-6.7%).
Amid rising house prices, some markets face stagnation, especially as inflation appears to be on the decline.
These changes offer buyers more leverage, but being prepared is still key. Knowing mortgage rates and down payment requirements can help potential homeowners navigate what’s affordable, according to Michael Hyman of NAR.
Price Pressure: Gradual Changes Ahead
Some buyers who previously left the market might re-enter, but the high equity homeowners currently possess helps stabilize prices. Additionally, income growth in various regions is outpacing rising home prices.
“These factors contribute to ongoing price resilience across many areas, despite an overall slowdown in sales due to limited inventories,” Xu noted.
So, should hopeful homebuyers feel relieved about rising prices? Perhaps, but Xu anticipates that improvements in affordability will come slowly.
“Slightly lower mortgage rates and better affordability are drawing some buyers back who were previously deterred,” remarked Schuh.
However, significant long-term relief for new buyers may hinge on an increase in housing supply, particularly for entry-level homes.
“Even as interest rates ease, we anticipate sustained upward price pressure as inventories remain tight in many markets.”
