(NewsNation) — Home prices rose in 87% of the nation’s metro areas from July through September, and the national median price for a single-family existing home grew by 3.1% over the past year, the National Association of Realtors reported.
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“Home prices remain on solid ground as reflected by the vast number of markets experiencing gains,” NAR Chief Economist Lawrence Yun said in the group’s news release.
“A typical homeowner accumulated $147,000 in housing wealth in the last five years. Distressed property sales and the number of people defaulting on mortgage payments are both at historic lows,” Yun added.
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The NAR report on third-quarter home sales also found that:
- 7% of U.S. markets experienced double-digit price hikes over the past year, down from 13% in the second quarter.
- The national median price for an existing single-family home is now $418,700.
- The South recorded a year-over-year price appreciation of just .8%, compared to 7.8% in the Northeast, 4.3% in the Midwest and 1.8% in the West.
- Eight of the 10 most expensive housing markets are in California. Honolulu, Hawaii, and Boulder, Colo., are the other two.
- Nearly 13% of markets (29 of 226) experienced home price declines in the third quarter, up from almost 10% in the second quarter.
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The NAR also reports that housing affordability improved slightly in the third quarter. It pegs the average monthly mortgage payment (assuming a 20% down payment) at $2,137 – down 2.4% from a year ago.
“Housing affordability has been a challenge, but the worst appears to be over,” Yun said. “Rising wages are outpacing home price increases. Despite some short-term swings, mortgage rates are set to stabilize below last year’s levels,” adding that more inventory is reaching the market and providing additional options for home buyers.
