Nearly 90% of Metros Saw Home Price Gains in Second Quarter

(Illustration courtesy of NAR)

Single-family existing-home sales prices rose in 89% of metro areas – 199 of 223 studied – in the second quarter, down from 93% in the previous quarter, the National Association of Realtors reported Wednesday.

The national median single-family existing-home price rose 4.9% from a year ago to $422,100.

The report said 13% of markets experienced double-digit annual price appreciation, down from 30% in the prior quarter.

“The record-high home prices in most metro markets bring good and bad news,” NAR Chief Economist Lawrence Yun said. “It’s terrific news for homeowners who are moving ahead in wealth gains. However, it’s difficult for those wanting to buy a home as the required income to qualify has roughly doubled from just a few years ago.”

Among U.S. regions, the South registered the largest share of single-family existing-home sales (45.5%) in the second quarter, with year-over-year price appreciation of 2.3%. Prices also bounced 9.8% in the Northeast, 5.5% in the Midwest and 5.4% in the West.

The top 10 metro areas with the largest year-over-year median price increases all posted gains of at least 14.1%. Five of the markets were in the Northeast.

Nearly 10% of markets–22 of 223–experienced home price declines in the second quarter, up from 7% in the first quarter.

“Previously fast-gaining markets took a breather in the past quarter, including Nashville, Durham, Austin and several Florida metro areas,” Yun said. “Conversely, some markets that experienced declines last year have roared back, such as San Francisco, Anaheim and New York.”

Yun predicted housing affordability will improve in the near future. “Mortgage rates have fallen measurably, and more supply is reaching the market,” he said. “Therefore, the income required to buy a home will decrease.”