New data from the National Association of Realtors (NAR) has determined three-quarters of the US metro markets (170 out of 228) registered home price gains during the second quarter, which is down from 83% in the first quarter. Only 5% of metro areas recorded double-digit price gains in the second quarter, down from 11% in the first quarter.
While fewer metros were reporting price gains, the national median single-family existing-home price reached a record high at $429,400. However, that price was only a 1.7% bump-up from one year earlier – in the first quarter, the national median price increased 3.4% year-over-year.
NAR also observed that 24% of metro markets experienced declining home prices in the second quarter, up from 17% in the first quarter. The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $2,212, a 6.5% increase quarter-over-quarter increase and a 0.3% decrease year-over-year.
“Home sales and the homeownership rate are underperforming relative to job growth,” said NAR Chief Economist Lawrence Yun. “There have been over 7 million net job additions compared to the pre-Covid peak. However, elevated mortgage rates have kept home sales below pre-Covid levels. The homeownership rate has fallen by a full percentage point since early 2023. If interest rates decline, the strongest release of pent-up housing demand is likely to occur in states with significant job growth in recent years, such as Idaho, Utah, the Carolinas, Florida, and Texas.”
On a regional basis, NAR reported the median existing single-family home price in the Northeast was $527,200, up 6.1% year-over-year, while the $328,800 price in the Midwest was a 3.5% increase. The $646,100 price in the West was a mild 0.6% uptick from one year earlier and the $376,300 price in the South was unchanged year-over-year.
“Home prices have been rising faster in the Midwest, due to affordability, and the Northeast, due to limited inventory,” said Yun. “The South region – especially Florida and Texas – is experiencing a price correction due to the increase in new home construction in recent years.”
On a metro basis, the biggest year-over-year median price increases were in Toledo, Ohio, and Jackson, Mississippi, which both saw a 10.5% increase. Eight of the 10 most expensive housing markets were in California, with the San Jose-Sunnyvale-Santa Clara leading the nation at $2.13 million, up 6.5% year-over-year.
