Median sales prices for existing, single-family properties increased in the third quarter of 2021, primarily driven by high homebuyer demand and persisting supply shortages, according to the latest quarterly report from the National Association of REALTORS®.
The report also found that 78% of 183 markets experienced double-digit, year-over-year price growth—fewer than in the previous quarter (94%).
Median sales price of single-family existing homes increased 16% YoY to $363,700. Regionally, growth was led by the Northeast (17.5%) and the South (14.9%), followed by the Midwest (10.7%) and the West (10.3%).
The markets with the highest YoY gains were: Austin-Round Rock, Texas (33.5%); Naples-Immokalee-Marco Island, Florida (32.0%); Boise City-Nampa, Idaho (31.5%); Ocala, Florida (29.7%); Punta Gorda, Florida (27.5%); Salt Lake City, Utah (26.2%); Phoenix-Mesa-Scottsdale, Arizona (25.8%); Sebastian-Vero Beach, Florida (25.7%); Port St. Lucie, Florida (24.9%); and New York-Jersey City-White Plains, New York-New Jersey (24.5%).
The most expensive markets in Q3 were San Jose-Sunnyvale-Santa Clara, California ($1,650,000); San Francisco-Oakland-Hayward, California ($1,350,000); Anaheim-Santa Ana-Irvine, California ($1,100,000); Urban Honolulu, Hawaii ($1,047,800); Los Angeles-Long Beach-Glendale, California ($860,900); San Diego-Carlsbad, California ($850,000); Boulder, Colorado ($769,400); Seattle-Tacoma-Bellevue, Washington ($708,400); Bridgeport-Stamford-Norwalk, Connecticut ($658,900); and Boston-Cambridge-Newton, Massachusetts-New Hampshire ($657,800).
“Home prices are continuing to move upward, but the rate at which they ascended slowed in the third quarter,” said Lawrence Yun, NAR chief economist, in a statement. “I expect more homes to hit the market as early as next year, and that additional inventory, combined with higher mortgage rates, should markedly reduce the speed of price increases.”
“While buyer bidding wars lessened in the third quarter compared to early 2021, consumers still faced stiff competition for homes located in the top ten markets,” said Yun. “Most properties were only on the market for a few days before being listed as under contract.”
As home prices increase, as do mortgages, impacting overall affordability. NAR reports that the average monthly mortgage payment on an existing single-family home—financed with a 20% down payment, 30-year fixed-rate loan—increased to $1,214 (up $156 from one year ago).
“For the third quarter—and for 2021 as a whole—home affordability declined for many potential buyers,” said Yun. “While the higher prices made it extremely difficult for typical families to afford a home, in some cases the historically-low mortgage rates helped offset the asking price.”
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