Median sales prices for existing single-family homes continues increasing, spurred on by the continued inventory shortage and record-low mortgage rates. Ninety-four percent of 183 metro areas experienced double-digit price increases (compared to 89% in the first quarter of 2021), according to the latest quarterly report from the National Association of REALTORS® (NAR).
Key findings:
The median sales price of single-family existing homes increased 22.9% to $357,900—an increase of $66,800 from one year ago.
All regions saw double-digit year-over-year price growth, which was led by the Northeast (21.8%), followed by the South (21.0%), West (20.9%) and Midwest (17.1%).
Twelve metro areas experienced price gains of over 30% YoY—eight are in the South and West regions: including Pittsfield, Massachusetts (46.5%); Austin-Round Rock, Texas (45.1%); Naples-Immokalee-Marco Island, Florida (41.9%); Boise City-Nampa, Idaho (41%); Barnstable, Massachusetts (37.8%); Boulder, Colorado (37.7%); Bridgeport-Stamford-Norwalk, Conn. (37.1%); Cape Coral-Fort Myers, Fla. (35.6%); Tucson, Arizona (32.6%); New York-Jersey City-White Plains, New York and New Jersey. (32.5%); San Francisco-Oakland-Hayward, California (31.9%); and Punta Gorda, Florida (30.8%).
The takeaway:
“Home price gains and the accompanying housing wealth accumulation have been spectacular over the past year, but are unlikely to be repeated in 2022,” said Lawrence Yun, NAR chief economist. “There are signs of more supply reaching the market and some tapering of demand. The housing market looks to move from ‘super-hot’ to ‘warm’ with markedly slower price gains.”
“Housing affordability for first-time buyers is weakening. Unfortunately, the benefits of historically-low interest rates are overwhelmed by home prices rising too fast, thereby requiring a higher income in order to become a homeowner,” added Yun. “Housing supply will be critical in moderating the growing housing costs and rising rents. Any disincentive to produce more housing inventory, such as extending the eviction moratorium, will only worsen the current shortage.”
For more information, please visit www.nar.realtor.
