NAR 3Q Sales: Prices Up Double Digits in 4 Out of 5 Metros

Selling prices rose in 99% of the 183 marketplaces NAR measures quarterly, and 16% (to $363,700) overall. Of the prime 10 metros for 12 months-around-calendar year rate gains, five are in Fla.

WASHINGTON – In the 3rd quarter of 2021, solid customer demand and minimal housing source led to median income price ranges growing for current one-household properties in all but 1 of 183 markets calculated by the Nationwide Affiliation of Realtors® (NAR).

NAR’s latest quarterly report located that 4 out of 5 (78%) of 183 marketplaces noticed double-digit year-in excess of-year rate increases, though that is much less than in the next quarter (94%). A few metro places saw value gains above 30% year-to-year – but all over again, much less than the number in the earlier quarter.

“Home prices are continuing to go upward, but the rate at which they ascended slowed in the 3rd quarter,” suggests Lawrence Yun, NAR main economist. “I hope far more properties to hit the market place as early as up coming calendar year, and that additional inventory, merged with higher mortgage loan premiums, should markedly minimize the speed of value boosts.”

The median income rate of solitary-family existing houses climbed 16% from just one 12 months ago to $363,700, a slower rate in comparison to the previous quarter (22.9%). All four main regions had double-digit 12 months-above-calendar year price growth, led by the Northeast (17.5%), adopted by the South (14.9%), the Midwest (10.7%) and the West (10.3%).

Five of best 10 12 months-to-year cost gains in Fla. metros

The markets with the highest yr-about-yr rate gains were being:

  1. Austin-Round Rock, Texas (33.5%)
  2. Naples-Immokalee-Marco Island, Fla., (32.%)
  3. Boise Town-Nampa, Idaho (31.5%)
  4. Ocala, Fla. (29.7%)
  5. Punta Gorda, Fla. (27.5%)
  6. Salt Lake City, Utah (26.2%)
  7. Phoenix-Mesa-Scottsdale, Ariz. (25.8%)
  8. Sebastian-Vero Seaside, Fla. (25.7%)
  9. Port St. Lucie, Fla. (24.9%)
  10. New York-Jersey Metropolis-White Plains, N.Y.-N.J. (24.5%)

“While purchaser bidding wars lessened in the 3rd quarter as opposed to early 2021, consumers nonetheless confronted stiff competition for homes located in the best 10 marketplaces,” claims Yun. “Most houses have been only on the marketplace for a few days just before getting outlined as underneath contract.”

The most high-priced marketplaces in the third quarter have been San Jose-Sunnyvale-Santa Clara, Calif. ($1,650,000) San Francisco-Oakland-Hayward, Calif. ($1,350,000) Anaheim-Santa Ana-Irvine, Calif. ($1,100,000) City Honolulu, Hawaii ($1,047,800) Los Angeles-Extended Seashore-Glendale, Calif. ($860,900) San Diego-Carlsbad, Calif. ($850,000) Boulder, Colo. ($769,400) Seattle-Tacoma-Bellevue, Clean. ($708,400) Bridgeport-Stamford-Norwalk, Conn. ($658,900) and Boston-Cambridge-Newton, Mass.-N.H. ($657,800).

In the third quarter, the regular month-to-month home loan payment on an existing one-relatives property – financed with a 20% down payment, 30-yr set-charge loan – rose to $1,214, a $156 year-to-yr raise. With the price tag of a normal existing solitary-family home rising by $50,300, the mortgage loan payment climbed even as the average mortgage amount in the 3rd quarter fell to 2.92% from 3.01% just one year ago.

Among the all homebuyers, the monthly property finance loan payment as a share of the median loved ones income increased to 16.6% (14.9% in 3Q, 2020). For to start with-time potential buyers, the standard home loan payment on a 10% down payment financial loan greater to 25.2% of the median household profits (22.6% one yr back). A property finance loan is viewed as reasonably priced if the payment quantities to no a lot more than 25% of the family’s cash flow.

“For the third quarter – and for 2021 as a total – dwelling affordability declined for several probable prospective buyers,” suggests Yun. “While the bigger costs created it really difficult for typical families to manage a property, in some situations the historically-very low property finance loan rates served offset the inquiring rate.”

A loved ones ordinarily wanted an revenue of much more than $100,000 to affordably fork out a 10% down payment mortgage in 17 marketplaces, matching the prior quarter. In 83 marketplaces, a loved ones commonly essential an cash flow of fewer than $50,000 to pay for a home (85 markets in the prior quarter).

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