It’s a good time to be a homeowner: The majority of metro markets—78% of 235 tracked—saw home prices still climbing in the third quarter, according to the National Association of REALTORS®’ newly released quarterly report.
“Even with affordability challenges causing the housing market to stagnate, home prices continue to set record highs in most parts of the country,” says Lawrence Yun, NAR’s chief economist. “Homeowners are the beneficiaries of the price gains.”
Over the past seven years, the average home has appreciated by $146,000, NAR research shows.
Home prices have remained strong across metro areas in recent years. In NAR’s latest reading for the third quarter, median single-family existing-home prices nationally climbed 1.7% annually to $432,900.
In the third quarter, monthly mortgage payment on a typical existing single-family home, using a 20% down payment, was $2,251—a $48 increase from the previous quarter and $69 increase from a year ago. On average, the typical family spent 24.1% share of their income on their mortgage payment, about the same from last year.
Where Prices Rose the Most in Q3
Overall, the Northeast region continued to lead the nation in home price appreciation, supported by its ongoing tight inventory levels. In the third quarter, median home prices in the Northeast rose 4% year-over-year to $561,500, followed by a 3.6% annual increase in the Midwest ($342,500).
According to NAR, the housing markets with the largest year-over-year median price increases in the third quarter were:
- Gulfport-Biloxi-Pascagoula, Miss.: +11%
- Rochester, N.Y.: 10.9%
- Jackson, Miss.: 10.1%
- Beaumont-Port Arthur, Texas: 9.9%
- York-Hanover, Pa.: +9.2%
- Grand Rapids-Wyoming, Mich.: 8.7%
- Cleveland-Elyria, Ohio: 8.6%
- Fort Wayne, Ind.: 8.5%
- Youngstown-Warren-Boardman, Ohio-Pa.: 7.6%
- Hartford-West Hartford-East Hartford, Conn.: 7.5%
Home Price Growth Softens in Some Markets
While home prices nationally remain resilient, some markets are showing signs of easing from the stronger pace of more recent years. Twenty-one percent of markets saw home prices decline in the third quarter, a slightly higher percentage from 20% in the second quarter, according to NAR.
“Throughout the last year, home prices declined in many Florida markets,” Yun says. “This quarter, however, homes in nearly all Florida markets are showing price gains. In a similar vein, price declines in other markets may also be brief if the local job market and economy are solid.”
Meanwhile, the Midwest continues to offer the most affordable homes in the country, “making homeownership more attainable” in the region, Yun says. The Midwest boasted the lowest median existing-home price in the third quarter at $342,500, NAR reports.
Where Homes Remain the Most Expensive
The West Coast remains home to the nation’s highest-priced housing markets, despite a slight 0.6% year-over-year decline in the region’s median home prices in the third quarter. The West Coast has the highest number of metros in the top 10 most expensive markets in the country, led in the third quarter by the San Jose metro area that now has a median sales price of $1.92 million.
“The artificial intelligence technology boom continues to push Bay Area home prices higher, keeping the region the most expensive in the country,” Yun says.
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Here are the 10 priciest housing markets in country, according to NAR’s third quarter sales data:
1. San Jose-Sunnyvale-Santa Clara, Calif.
Median sales price: $1.92 million
Year-over-year change: +0.3%
2. Anaheim-Santa Ana-Irvine, Calif.
Median sales price: $1.47 million
Year-over-year change: +5%
3. San Francisco-Oakland-Hayward, Calif.
Median sales price: $1.35 million
Year-over-year change: +2.7%
4. Urban Honolulu, Hawaii
Median sales price: $1.20 million
Year-over-year change: +6.4%
5. San Diego-Carlsbad, Calif.
Median sales price: $1.08 million
Year-over-year change: +6.5%
6. Los Angeles-Long Beach-Glendale, Calif.
Median sales price: $958,500
Year-over-year change: +0.5%
7. San Luis Obispo-Paso Robles, Calif.
Median sales price: $956,300
Year-over-year change: +2.6%
8. Salinas-Monterey, Calif.
Median sales price: $948,900
Year-over-year change: -7%
9. Oxnard-Thousand Oaks-Ventura, Calif.
Median sales price: $940,000
Year-over-year change: +0.5%
10. Bridgeport-Stamford-Norwalk, Conn.
Median sales price: $874,200
Year-over-year change: +3.5%
