U.S. home prices increased 1.7% in the third quarter, with the median national home price rising to $426,800, according to the National Association of Realtors (NAR).
Home prices rose in 77% of metro markets (176 out of 230) during the third quarter, up from 75% in the second quarter.
Four percent of metro areas recorded double-digit price gains in the third quarter, down slightly from 5% in the second quarter.
Year-over-year, home prices were up 6% in the Northeast, 4.2% in the Midwest, and 0.5% in the South, but were down -0.1% in the West.
“Home sales have struggled to gain traction, but prices continue to rise, contributing to record-high housing wealth,” says Lawrence Yun, chief economist for NAR, in a statement. “Markets in the supply-constrained Northeast and the more affordable Midwest have generally seen stronger price appreciation.”
“Price declines are occurring mainly in southern states, where there has been robust new home construction in recent years,” Yun adds. “Given the region’s faster job growth, these price drops should be viewed as temporary and as a second-chance opportunity for those previously priced out of the market.”
Markets with biggest year-over-year median price increases included Trenton, N.J. (9.9%); Lansing-East Lansing, Mich. (9.8%); Nassau County-Suffolk County, N.Y. (9.4%); New Haven-Milford, Conn. (9.0%); and New York-Jersey City-White Plains, N.Y.-N.J. (8.1%).
Photo: Ian MacDonald