Home prices are on the rise. But buyers should brace for higher prices. Nearly all—93%—of the largest metros in the U.S. saw home prices rise in the third quarter over the past year. A shortage of homes for sale, combined with higher demand, continues to push home prices higher, according to the latest quarterly report from the National Association of REALTORS®, released Thursday.
The national median existing single-family home price in the third quarter was $280,200, a 5.1% increase from a year ago.
“Incremental price increases are to be expected, but the housing market has been seeing re-acceleration in home prices as more buyers want to take on lower interest rates in the midst of insufficient supply,” says Lawrence Yun, NAR’s chief economist. “Unfortunately, income and wages are not rising as fast and will make it difficult to buy once rates rise.”
Ninety-six out of 178 metros that NAR tracked saw home price growth of 5% or higher. Ten metros saw double-digit increases in the third quarter annually, led by Montgomery, Ala. (12.6%); Spokane-Spokane Valley, Wash. (12.6%); and Salt Lake City (12%).