Home prices continue to rise rapidly as homeowners see double-digit gains over the past year. The median sales price of single-family existing homes rose 16% in the third quarter, an increase of $50,300, according to the latest quarterly report from the National Association of REALTORS®. Three metros saw price gains of more than 30% compared to a year ago.

The median sales price of a single-family existing home rose to $363,700 in the third quarter, which does mark a slower pace in comparison to the prior quarter. Still, all four major regions of the U.S. posted double-digit year-over-year growth, led by the Northeast (17.5%), followed by the South (14.9%), Midwest (10.7%), and the West (10.3%), NAR reports.

“Home prices are continuing to move upward, but the rate at which they ascended slowed in the third quarter,” says Lawrence Yun, NAR’s chief economist. “I expect more homes to hit the market as early as next year, and that additional inventory, combined with higher mortgage rates, should markedly reduce the speed of price increases.”

Still, buyers are not letting the higher prices scare them off. “While buyer bidding wars lessened in the third quarter compared to early 2021, consumers still faced stiff competition for homes located in the top ten markets,” Yun says. “Most properties were only on the market for a few days before being listed as under contract.”

Housing Markets With the Steepest Gains

The following metros saw the highest year-over-year home price gains in the third quarter, according to NAR:

• Austin-Round Rock, Texas: 33.5%
• Naples-Immokalee-Marco Island, Fla.: 32%
• Boise City-Nampa, Idaho: 31.5%
• Ocala, Fla.: 29.7%
• Punta Gorda, Fla.: 27.5%
• Salt Lake City, Utah: 26.2%
• Phoenix-Mesa-Scottsdale, Ariz.: 25.8%
• Sebastian-Vero Beach, Fla.: 25.7%
• Port St. Lucie, Fla.: 24.9%
• New York-Jersey City-White Plains, N.Y.-N.J.: 24.5%

Home buyers are still snatching up homes at a quick pace. Homes sold more quickly in October than in any October in recent history, according to realtor.com®’s Monthly Housing Report.

The typical home spent just 45 days on the market in October, reaching an eight-month streak of homes selling faster than in any month before 2021, realtor.com® says.

“The year may be winding down, but 2021’s feverish pace of home sales continues to hit new records,” says Danielle Hale, realtor.com®’s chief economist. “Despite returns to more typical pre-COVID seasonality which means a slower fall versus summer season, October housing data suggests that demand is still unseasonably high.”

Buyers are persisting in their housing search due to low mortgage rates and surging rental prices, Hale says. “Looking at the bigger picture of the pandemic, increased adoption of technology could be playing a key role in helping buyers move further along in the process virtually,” she continues. “With these ‘serious searchers’—some of whom have been planning to buy since before the pandemic—better prepared to jump on new listings quickly and keeping inventory tight, mismatched supply and demand will continue to challenge buyers eager to move on to the next phase of life.”

Home buyers must be ready to make quick decisions as competition remains high. Eighty-six percent of homes sold in less than a month in September, according to the National Association of REALTORS®.

The South is seeing some of the fastest sales. The five fastest-selling metros compared to last year are Miami (–31 days compared to last year); Raleigh, N.C. (–30 days); Jacksonville, Fla. (–17 days); Orlando, Fla. (–17 days); and Memphis, Tenn. (–16 days), according to realtor.com®.

As home values rise, some homeowners may want to brace themselves for a potentially shocking property tax bill, housing experts warn. The magnitude and timing will vary. But property taxes are expected to rise by hundreds of dollars in many areas, even in states such as California and Texas that have laws limiting year-over-year increases.

Property taxes don’t always stay in sync with home price increases, however. “An increase in value does not necessarily mean that the next year’s property taxes will increase at a proportionate rate,” Lee Pierce, senior vice president of lending for Seattle Credit Union, told NerdWallet.

Median existing-home prices have climbed by 13.3% in September compared to a year ago, according to the National Association of REALTORS®.

But even in states that try to shield homeowners from hefty increases in property taxes, owners may still see a higher bill. Eighteen states and the District of Columbia limit how much property tax assessments can rise each year. The caps vary. In California, the assessed value can increase by a maximum of 2%, while in Texas, the maximum increase is 10%.

Homeowners who pay property taxes via an escrow account on a mortgage typically receive an escrow account disclosure from the loan servicers early each year, NerdWallet explains. The statement will include the expected annual cost of property taxes, homeowners insurance, and mortgage insurance if applicable. If the servicer is unable to cover the tax bill from an existing escrow account, they will have the homeowner pay the difference.

Homeowners can instruct their lenders to withhold more each month in their escrow account to avoid potential shortfalls if they believe their property taxes are likely to rise.

With double-digit annual gains fueling homeowner wealth, owners have gotten richer, and they’re starting to take advantage of that added equity.

Cash-out refinancing, which allows owners to take out a lump sum from their equity through loans, increased by 33% in October compared to a year prior, according to Black Knight Inc.

The amount of U.S. tappable home equity reached a record high in October of $9.1 trillion, according to Black Knight.

“We have record home equity thanks to record home prices,” Dan Roccato, a financial analyst with Credible, told Forbes.com. “We’ve had this incredible run-up in home prices over the last 18 months.”

Homeowners must meet certain credit standards to be able to tap into their home’s equity through cash-out refinancing. Lenders usually cap mortgages at 80% of a home’s value.

The median existing-home price for all housing types nationwide in September was up 13.3%, according to the National Association of REALTORS®. NAR predicts that prices slow in the new year, mostly due to rising mortgage rates that will likely lead to fewer home sales. Home prices are predicted to moderate at a 2.8% growth in 2022, according to NAR.

A first-time home buyer may need to be educated about the realities of the housing market before they fall in love with a home and then quickly lose out to another bid. To prevent heartache, real estate professionals can have frank conversations with their buyers about the realities of the competition and the amount of money it takes to become a home buyer in today’s heated market.

No home will be perfect.

Housing inventories are ultra-low. Any home viewed as “perfect” will have many buyers lined up, thus likely instigating a bidding war. Buyers may need to be willing to accept some cosmetic changes or a home farther from their preferred destination, realtor.com® says.

Buyers also can’t expect sellers to fix everything after a home inspection. In a seller’s market, many sellers have backup offers, including those buyers who may be willing to waive a home inspection. “Expecting a seller in a competitive market to address every line item [from an inspection report] is a delusion that could cost you the house,” realtor.com® says.

You can set up a mortgage after you find a home.

Successful house hunting today is done at a quick pace. That means lining up everything for financing before you even look. A mortgage preapproval is critical, agents say.

“Your first call when even thinking about maybe purchasing should be your bank,” Haden Riggs, a team leader with Keller Williams in Tyler, Texas, told realtor.com®. “They will line everything out and put you in the best position to purchase.” Buyers will be unable to submit a competitive offer without proof of funds.

You’ll likely pay more than the asking price.

Bidding wars have been driving up prices. Even as some signs of cooling appear in the market, buyers in today’s market are less likely to pay less than the asking price, and often they’re still paying more. Read more: Where Homes Are Selling for $100K Over Asking

If the price of a home looks too good to be true, it probably is. Some seller’s agents are using a bargain basement starting price in the hopes of a bidding war that drives up the price. Buyers will need to be ready with a competitive offer to triumph in buying a home in the current market.

A majority of house hunters say it’s not prices that are keeping them out of the housing market—it’s other buyers. Forty-five percent of prospective buyers recently surveyed say they keep getting outbid by other offers, according to a new survey from the National Association of Home Builders. The NAHB says this is only the third time in the survey’s history that the top reason prospective buyers have been unsuccessful has not been due to finding a home at an affordable price.

In the third quarter, 66% of active home buyers say they’ve spent three months or more searching for a home without success.

But even as competition remains fierce, prospective buyers are not giving up. Nearly half of active buyers who have been searching for three months or more say they will continue to look for the “right” home in the same location.

Twenty-nine percent of house hunters say they will accept a smaller or older home so they can expand their home search.

Twenty-two percent of buyers say they will give up on their home search until next year or later. That is down slightly from the second quarter, when 20% said they’d give up, and significantly lower than a record high of 28% reached in the final quarter of 2020, the NAHB survey shows.

The U.S. House of Representatives passed the bipartisan Infrastructure Investment and Jobs Act Friday, sending it to President Joe Biden for his signature.

The $1.2 trillion bill is the most significant investment in infrastructure in decades. It includes new money for the power grid, managing climate risks, and repairing and replacing aging roads, bridges, ports, airports, and railways.

It also contains a historic $65 billion investment in broadband, a key priority of the National Association of REALTORS®.

“NAR supported many elements of this legislation that will make communities more resilient and sustainable,” said NAR President Charlie Oppler.  “Our country has a dire need for broadband expansion, and this new funding will ensure all communities have affordable access to a world-class communications infrastructure and provide opportunities to rural, underserved, and low-income areas.”

NAR expressed concern over one element of the bill that uses guarantee fees charged by government-sponsored enterprises like Fannie Mae and Freddie Mac as a funding source.

“The nation faces critical challenges as Americans struggle to meet their mortgage obligations, find affordable housing amidst a supply shortage, and confront a widening homeownership gap among racial groups,” Oppler continued. “We are committed to working with Congress and the administration to ensure this redirected money does not diminish the vital GSE mission to provide affordable housing and equal access to credit in America.”

The measure passed the Senate in August by a vote of 69-30.