Nov 15

Home Prices Climb

Home Prices Climb

 

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%

Overall, the most expensive housing markets in the third quarter were:

  • San Jose-Sunnyvale-Santa Clara, Calif.: $1.65 million
  • San Francisco-Oakland-Hayward, Calif.: $1.35 million
  • Anaheim-Santa Ana-Irvine, Calif.: $1.1 million
  • Urban Honolulu, Hawaii: $1,047,800
  • Los Angeles-Long Beach-Glendale, Calif.: $860,900
  • San Diego-Carlsbad, Calif.: $850,000
  • Boulder, Colo.: $769,400
  • Seattle-Tacoma-Bellevue, Wash.: $708,400
  • Bridgeport-Stamford-Norwalk, Conn.: $658,900
  • Boston-Cambridge-Newton, Mass.-N.H.: $657,800

Mortgage Payments Rising

The average monthly mortgage payment on an existing single-family home—financed with a 20% down payment, 30-year fixed-rate loan–increased to $1,214, NAR reports. This marked an increase of $156 compared to a year ago. The higher home prices are prompting higher mortgage payments despite lower mortgage rates, which averaged 2.92% in the third quarter.

“For the third quarter—and for 2021 as a whole—home affordability declined for many potential buyers,” said Yun. “While the higher prices made it extremely difficult for typical families to afford a home, in some cases the historically-low mortgage rates helped offset the asking price.”

Source:
National Association of REALTORS®
©National Association of REALTORS®
Reprinted with permission

admin

For all of your Real Estate needs, place yourself in the competent hands of a career Realtor who is a Philadelphia native and Delaware County resident. Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both.

Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary.

Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that “perfect” property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently.

When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting – or exceeding – his clients’ expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame.

For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania… call Anthony DiDonato.