Earlier this month, the National Association of Realtors (NAR) released its most recent quarterly report on metro home prices. Here are its key findings — as well as potential impacts you could see if you’re looking to buy a home:
- A low inventory of moderately priced homes has resulted in fewer home sales and rising metro market prices.
What this means for potential homebuyers: You likely will continue to find it hard to find homes in your price range that meet all of your needs and that you want to buy, and you may continue to face bidding wars when you go to make an offer.
- The national median for existing U.S. single-family home prices in the third quarter of 2018 was $266,900, up 4.8% from the third quarter of 2017.
- Single-family home prices increased in 93% of real estate markets (find specific details by market on this map from NAR).
What this means for potential homebuyers: Knowing your market is critical, and you may want to partner with an experienced real estate agent with knowledge about the area where you’re looking to buy, as they’ll be able to help you navigate negotiations.
Where Are Home Prices Increasing The Most?
When it comes to the most expensive housing markets, the latest numbers show that the west coast is leading things. The San Jose, California, metro area beat out all others; its median existing single-family home price was $1,300,000.
Other high-end markets include San Francisco-Oakland-Hayward, California, with a median existing single-family home price of $989,000, and Orange County, California, (Anaheim-Santa Ana-Irvine) at $830,000.
Where Are Home Prices Increasing The Least?
The lowest priced home markets in the U.S. are found in the central and northeast parts of the country. They include Youngstown-Warren-Boardman, Ohio, at $97,600; Decatur, Illinois, at $102,800; and Cumberland, Maryland, at $100,300.
Lawrence Yun, chief economist for the NAR, explains: “Aspiring middle-class homebuyers continue to face affordably issues, as buyers are increasingly being priced out in the West while the rest of the country struggles, too.” He adds, “The market desperately needs homebuilders to begin constructing more moderately priced single-family homes and condominiums to help satisfy demand and mitigate rapid price growth.”
If you’re looking to begin your journey to homeownership, get in touch with a Mr. Cooper pro or use one of our many calculators to crunch your specific numbers.