Home Sales Prices Increased in Fewer Markets in Q2

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Single-family existing-home sales prices increased in 89% of U.S. metro areas in the second quarter, down from 93% in the first quarter, according to the National Association of Realtors (NAR).

The national median single-family existing-home price increased 4.9% from a year ago to $422,100.

Twenty-nine markets (13%) experienced double-digit annual price appreciation (down from 30% in the prior quarter), according to NAR’s quarterly report.

The monthly mortgage payment on a typical, existing single-family home with a 20% down payment was $2,262 – up 10.3% from one year ago.

During the second quarter, the average rate for a 30-year fixed mortgage ranged from 6.82% to 7.22%.

In the second quarter, the median single-family existing-home price for the San Jose, California metro area was $2,008,000.

That’s the highest median single-family existing-home price since NAR began tracking metro area single-family home prices in 1979.

“The record-high home prices in most metro markets bring good and bad news,” says Lawrence Yun, chief economist for NAR, in a release. “It’s terrific news for homeowners who are moving ahead in wealth gains. However, it’s difficult for those wanting to buy a home as the required income to qualify has roughly doubled from just a few years ago.”

Compared to one year ago, the national median single-family existing-home price grew 4.9% to $422,100. In the previous quarter, the year-over-year national median price increased 5%.

Among the major U.S. regions, the South registered the largest share of single-family existing-home sales (45.5%) in the second quarter, with year-over-year price appreciation of 2.3%. 

Prices also bounced 9.8% in the Northeast, 5.5% in the Midwest and 5.4% in the West.

The top 10 metro areas with the largest year-over-year median price increases, which can be influenced by the types of homes sold during the quarter, all posted gains of at least 14.1%. 

Five of the markets were in the Northeast.

Photo: Kostiantyn Li

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