Dive Brief:
- According to the latest National Association of Realtors Metropolitan Median Area Prices and Affordability report, the median home price of existing single-family homes in the third quarter was $229,000, up 5.5% from the same quarter last year.
- Home prices were higher in 154 out of 178 measured metropolitan areas (87%), and median prices were down in 24 metros from a year ago. 21, or 12% of metro areas, saw double-digit increases, compared with 16 in the third quarter of 2014.
- The five most expensive existing-home markets in the third quarter, with their median home prices are: San Jose, CA ($965,000); San Francisco ($809,400); Anaheim-Santa Ana, CA ($715,300); Honolulu, HI ($714,000) and San Diego ($554,400). The most affordable were Cumberland, MD ($82,400); Youngstown-Warren-Boardman, OH ($90,700); Decatur, IL ($101,400); Rockford, IL ($102,800) and Elmira, NY ($108,800).
Dive Insight:
"The demand for buying picked up speed in many metro areas during the summer as more households entered the market, encouraged by favorable mortgage rates and improving local economies," NAR chief economist Lawrence Yun said. "While price growth still teetered near or above unhealthy levels in some markets, the good news is that there was some moderation despite the stronger pace of sales."
The NAR saw the quarterly results as a good sign for the market, as "overall price appreciation slowed to a healthier pace." Residential experts have pointed to rising home prices as one of the main obstacles keeping potential buyers from entering the market.
Some regional breakdowns for the third quarter compared with last year are:
- Northeast: Existing home sales were up 6.4%, and median existing single-family home price was $269,400, up 3.5%.
- Midwest: Existing home sales were up 2.1%, and median existing single-family home price was $181,100, up 4.8%.
- South: Existing home sales were up 3%, and median existing single-family home price was $200,700, up 6%.
- West: Existing home sales were up 3.9%, and median existing single-family home price was $324,300, up 7.3%.