Roughly 90% of metro markets (196 out of 226, or 87%) recorded home price gains during the third quarter, with 7% of these metros recording double-digit gains, according to the National Association of Realtors (NAR).
Compared to one year ago, the national median single-family existing-home price during the third quarter increased by 3.1% to $418,700. In the prior quarter, the year-over-year national median price increased 4.9%.
The top metro areas with the largest year-over-year median price increases were Racine, Wisconsin (13.7%), Youngstown, Ohio (13.1%), Syracuse, New York (13.0%), Peoria, Illinois (12.4%), and Springfield, Illinois (12.3%). Eight of the top 10 most expensive markets were in California, led by San Jose ($1.9 million, up 2.7%).
Among the major regions, the South registered the largest share of single-family existing-home sales (45.1%) in the third quarter, with year-over-year price appreciation of 0.8%. Prices also increased 7.8% in the Northeast, 4.3% in the Midwest and 1.8% in the West.
“Home prices remain on solid ground as reflected by the vast number of markets experiencing gains,” said NAR Chief Economist Lawrence Yun. “A typical homeowner accumulated $147,000 in housing wealth in the last five years. Even with the rapid price appreciation over the last few years, the likelihood of a market crash is minimal. Distressed property sales and the number of people defaulting on mortgage payments are both at historic lows.”
Yun added, “Housing affordability has been a challenge, but the worst appears to be over. Rising wages are outpacing home price increases. Despite some short-term swings, mortgage rates are set to stabilize below last year’s levels. More inventory is reaching the market and providing additional options for consumers.”
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