Home prices rose in 80% of metro markets during the second quarter, according to data from the National Association of Realtors (NAR), with 5% of the metros recording double-digit price gains. This is up from 71% of metros in the first quarter
The national median single-family existing-home price rose 1.5% year-over-year to $434,900, up from 0.5% annual growth in the first quarter. On a regional measurement, home prices were up year-over-year in the Northeast ($547,200, +3.8%), Midwest ($340,800, +3.6%), and South ($380,000, +1.0%), but were down in the West ($637,900, -0.8%).
The metro areas with the greatest year-over-year median existing single-family home price gains were Beaumont-Port Arthur, Texas (+11.0%). Naples, Florida (+10.5%), Gulfport-Biloxi-Pascagoula, Mississippi (+10.3%), Syracuse, New York (+9.6%), and Hartford, Connecticut (+8.0%).
“Home sales increased despite mortgage rates rising. This testifies to the potential housing demand building up from steady job and income gains,” said NAR Chief Economist Dr. Lawrence Yun. “Sales rose in three of the four major regions, with the South leading the way due to faster job growth. The Northeast was the exception, held back partly by slower job growth and faster-appreciating home prices, which hurt affordability. It is welcoming to see incomes rising faster than home prices, which has helped boost affordability—but the big short-term challenge to affordability is coming from rising mortgage rates.”
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