If you need more proof of how much home prices have skyrocketed: Home prices were still rising in 98% of the U.S. market, according to a new report, despite the housing market cooling off over the summer.
Between July and September, home prices increased in 181 of the 185 cities tracked by the National Association of Realtors. But profits slowed significantly as mortgage rates rose in the meantime. About half of the cities (46%) saw him see a double-digit increase from the same period last year, down from his 80% of cities last quarter.
NAR chief economist Lawrence Yun said “home price growth is slowing home price growth, a trend that will continue until mortgage rates stop rising.”
The median income needed to buy a typical home climbed to $88,300 in the third quarter, driven by strong price increases and higher mortgage rates, Yun said. That’s about $40,000 more than before the pandemic started.
Average mortgage rates for 30-year fixed-rate loans in the third quarter from July to September were lower than today, ranging from 4.99% to 6.70%, according to Freddie Mac.Rates are currently flat 7% or more It is expected to rise further as the Federal Reserve continues to take steps to curb inflation.
Prices rose across the country in the third quarter, but were highest in the South, where prices rose 11.9% year-on-year in the third quarter, according to the report. Prices rose 8.2% in the Northeast, 7.4% in the West and 6.6% in the Midwest.
Seven of the 10 cities with the biggest year-over-year price increases were in Florida.
Sarasota, Florida saw the biggest price increase in the third quarter, up 23.8% from the same period last year. This is followed by the Lakeland and Winter Haven areas of Florida, which increased 21.2% from last year. Myrtle Beach, South Carolina increased 21.1%. Panama City, Florida he increased 20.5%. Daytona Beach, Florida he increased by 19.6%.
The most expensive markets to buy a home in are primarily in the West, with half of the top 10 most expensive cities in California.
San Jose, Calif. was the most expensive place to buy a home in the third quarter, with a median price of $1,688,000, up 2.3% from the previous year. San Francisco followed with a median of $1,300,000. Anaheim, California, $1,200,000. Honolulu $1,127,400. San Diego is $900,000.
“The more expensive markets on the West Coast are likely to experience price declines following this rapid price increase, a result of years of limited housing construction,” Yoon said. “We will continue to see price increases in the Midwest, where home prices are relatively affordable.”