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Home prices are still high. But they’re not rising quite as much.

Nearly 90 percent of the country’s metro areas saw single-family home prices rise in the fourth quarter of 2022, according to the newly released Metropolitan Median Home Prices and Affordability Report for Q4 2022 from the National Association of Realtors (NAR). The national median price for an existing single-family home now stands at $378,700. While that’s a 4 percent year-over-year increase, it actually represents quite a slowdown compared to the previous quarter’s 8.6 percent rise in home prices.

“A slowdown in home prices is underway and welcomed, particularly as the typical home price has risen 42 percent in the past three years,” said Lawrence Yun, NAR’s chief economist, in a statement.

 

However, thanks to inflation, increased interest rates and other factors, the monthly mortgage payment on that median-priced home, with a 20 percent down payment, would now be $1,969, according to NAR — a jump of $720 (or 58 percent) over one year ago.

With median home prices rising just 4 percent year-over-year, but monthly mortgage payments rising a whopping 58 percent, it’s clear that the housing market is somewhat in flux.

Which housing markets are up? And which are down?

Nearly all (166 out of 186) of metropolitan areas tracked by NAR saw home price gains in Q4 2022. But the amount of those gains is shrinking. Double-digit price increases occurred in just 18 percent of those areas — down from 46 percent in Q3.

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As always in real estate, it’s a matter of location, location, location. The Northeast region had the highest year-over-year price appreciation in Q4 with 5.3 percent growth. The South saw 4.9 percent, the Midwest 4.0 percent and the West 2.6 percent.

Out of the metro areas with the largest year-over-year price increases, Farmington, New Mexico, saw the highest increase at 20.3 percent. Fast-growing Sun Belt states Florida, South Carolina and North Carolina accounted for seven out of the top 10.

 

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