Most metropolitan areas saw double-digit home price growth in Q3 – RISMedia
Median selling prices of existing single-family properties increased in the third quarter of 2021, mainly due to strong buyer demand and persistent supply shortages, according to the latest quarterly report of the National Association of Real Estate Agents®.
The report also found that 78% of the 183 markets saw double-digit price growth year-over-year, down from the previous quarter (94%).
The median selling price of existing single-family homes increased 16% year-on-year to $ 363,700. Regionally, growth was led by the Northeast (17.5%) and the South (14.9%), followed by the Midwest (10.7%) and the West (10.3%) .
The markets with the highest annual gains were: Austin-Round Rock, Texas (33.5%); Naples-Immokalee-Marco Island, Florida (32.0%); Boise City-Nampa, Idaho (31.5%); Ocala, Florida (29.7%); Punta Gorda, Florida (27.5%); Salt Lake City, Utah (26.2%); Phoenix-Mesa-Scottsdale, Arizona (25.8%); Sebastian-Vero Beach, Florida (25.7%); Port St. Lucie, Florida (24.9%); and New York-Jersey City-White Plains, New York-New Jersey (24.5%).
The most expensive markets in the third quarter were San Jose-Sunnyvale-Santa Clara, California ($ 1,650,000); San Francisco-Oakland-Hayward, California ($ 1,350,000); Anaheim-Santa Ana-Irvine, Calif. ($ 1,100,000); Urban Honolulu, Hawaii ($ 1,047,800); Los Angeles-Long Beach-Glendale, California ($ 860,900); San Diego-Carlsbad, California ($ 850,000); Boulder, Colorado ($ 769,400); Seattle-Tacoma-Bellevue, Washington ($ 708,400); Bridgeport-Stamford-Norwalk, Connecticut ($ 658,900); and Boston-Cambridge-Newton, Massachusetts-New Hampshire ($ 657,800).
“Home prices continue to rise, but the rate at which they rose slowed in the third quarter,” Lawrence Yun, chief economist of the NAR, said in a statement. “I expect more homes to hit the market as early as next year, and this additional inventory, combined with higher mortgage rates, should significantly reduce the speed of price increases.”
“While bidding wars between buyers declined in the third quarter compared to early 2021, consumers still faced stiff competition for homes in the top ten markets,” Yun said. “Most of the properties were only on the market a few days before they were listed as under contract.”
As house prices rise, so do mortgage loans, which impacts overall affordability. NAR reports that the average monthly mortgage payment on an existing single-family home – funded with a 20% down payment, 30-year fixed-rate loan – has increased to $ 1,214 (up $ 156 from a year ago ).
“For the third quarter – and for 2021 as a whole – home affordability has declined for many potential buyers,” Yun said. “While the higher prices have made it extremely difficult for typical families to purchase a home, in some cases historically low mortgage rates have helped to offset the asking price. “
For more information, please visit www.nar.realtor.