More than 80% of the major U.S. metro markets, or 182 out of 221, posted home price gains in the third quarter, according to data from the National Association of Realtors (NAR), which noted that 11% of the tracked metro areas registered double-digit price increases over the same period, up from 5% in the second quarter.
Compared to a year ago, the national median single-family existing-home price climbed 2.2% to $406,900 in the third quarter – in comparison, the year-over-year national median price declined 2.4% in the second quarter. Regionally, the South saw the largest share of single-family existing-home sales (46%) in the third quarter, with year-over-year price appreciation of 1.7%. Prices also grew 5.3% in the Northeast, 5.2% in the Midwest and 0.6% in the West.
The top 10 metro areas with the largest year-over-year price increases all recorded gains of at least 12.6%, with six of those markets in the Midwest. Those included Fond du Lac, Wisconsin (18.9%); Hickory-Lenoir-Morganton, North Carolina (17.1%); Oshkosh-Neenah, Wisconsin. (15.2%); Green Bay, Wisconsin (14.8%); and Reading, Pennsylvania (14.7%). However, year-over-year prices in the third quarter were down by 10.3% in Austin, 1.5% in Phoenix, 1.2% in Salt Lake City, and 1.1% in both Dallas and Houston.
“Homeowners have accumulated sizable wealth, with a typical homeowner gaining more than $100,000 in overall net worth since 2019 and before the height of the pandemic,” said NAR Chief Economist Lawrence Yun. “However, the persistent lack of available homes on the market will make the dream of homeownership increasingly difficult for younger adults unless housing supply is significantly boosted. Following the big price changes during the last several years, it’s natural to witness momentary swings in prices. Some markets that experienced sizable home price gains since 2020 have turned lower, resulting in temporary relief for prospective home buyers. Also, a few markets in the West that experienced price declines in the prior quarter have seen prices rise again.”
