2021 home prices continue to increase during the last quarter of the year, albeit at a slower pace than the previous quarter, according to the latest report from the National Association of REALTORS® (NAR).
Key findings:
- The report measured 183 markets and showed that 67% had double-digit price appreciation verses 78% during the prior quarter.
- Existing home prices rose at a slower rate nationwide, with a 14.6% (15.9% the prior quarter) YoY gain, reaching an average of $361,700.
- With sustained price appreciation and higher mortgage rates, affordability worsened in the fourth quarter as the monthly mortgage payment on a typical existing single-family home with 20% down payment rose by $201 from a year ago to $1,240, or 16.9% of the median family income.
- Metros in the Sunbelt and Mountain states topped the list of areas with the highest yearly price gains: Punta Gorda, Florida (28.7%); Ocala, Florida (28.2%); Austin-Round Rock, Texas (25.8%); Phoenix-Mesa-Scottsdale, Arizona (25.7%); Sherman-Denison, Texas (25.1%); Tucson, Arizona. (24.9%); Las Vegas-Henderson-Paradise, Nevada (24.7%); Ogden-Clearfield, Utah (24.7%); Salt Lake City, Utah (24.4%); and Boise City-Nampa, Idaho (24.3%).
- The top 10 most expensive markets in the fourth quarter witnessed prices surge, with nine of them doing so by double-digit percentages. California led the way with five metros in the top 10, along with five other areas, including: San Jose-Sunnyvale-Sta. Clara, California ($1,675,000; 19.6%); San Francisco-Oakland-Hayward, California ($1,310,000; 14.9%); Anaheim-Santa Ana-Irvine, California ($1,150,000; 23%); Urban Honolulu, Hawaii ($1,054,500; 16.8%); San Diego-Carlsbad, California ($845,000; 14.2%); Los Angeles-Long Beach-Glendale, California ($797,900; 15.9%); Boulder, Colorado ($775,100; 17.2%); Seattle-Tacoma-Bellevue, Washington ($700,000; 13.9%); Naples-Immokalee-Marco Island, Florida ($685,000; 21.2%); and Nassau County-Suffolk County, New York (644,600; 9%).
The takeaway:
“Homebuyers in the last quarter saw little relief as home prices continued to climb, albeit not as fast as earlier in the year,” said Lawrence Yun, NAR chief economist. “The increasing prices are indicative of a seller’s market, with an abundance of eager buyers and very limited supply. The good news is that home prices should begin to normalize later in 2022 as more homes come on the market.”
Data tables for MSA home prices (single-family and condo) are posted at https://www.nar.realtor/research-and-statistics/housing-statistics/metropolitan-median-area-prices-and-affordability.
Information about NAR is available at www.nar.realtor.
