Continued low levels of housing inventory, combined with record-low mortgage rates spurring housing demand, have caused an increase in median sales prices for existing single-family homes in all but one of 183 measured markets during the second quarter of 2021. That is according to the National Association of Realtors’ latest quarterly report, which reveals that 94 percent of 183 metro areas also experienced double-digit price increases (89 percent in the first quarter of 2021).
The median sales price of single-family existing homes rose 22.9 percent to $357,900, an increase of $66,800 from one year ago. All regions saw double-digit year-over-year price growth, which was led by the Northeast (21.8 percent), followed by the South (21.0 percent), West (20.9 percent), and Midwest (17.1 percent).
“Home price gains and the accompanying housing wealth accumulation have been spectacular over the past year, but are unlikely to be repeated in 2022,” said Lawrence Yun, NAR chief economist.
“There are signs of more supply reaching the market and some tapering of demand,” he continued. “The housing market looks to move from ‘super-hot’ to ‘warm’ with markedly slower price gains.”
That said, 12 metro areas did report price gains of over 30 percent from one year ago, eight of which are in the South and West regions, including Pittsfield, Massachusetts (46.5 percent); Austin-Round Rock, Texas (45.1 percent); Naples-Immokalee-Marco Island, Florida (41.9 percent); Boise City-Nampa, Idaho (41 percent); Barnstable, Massachusetts (37.8 percent); Boulder, Colorado (37.7 percent); Bridgeport-Stamford-Norwalk, Connecticut (37.1 percent); Cape Coral-Fort Myers, Florida (35.6 percent); Tucson, Arizona (32.6 pecent); New York-Jersey City-White Plains, New York-New Jersey (32.5 percent); San Francisco-Oakland-Hayward, California (31.9 percent); and Punta Gorda, Florida (30.8 percent).
Yun notes that home prices are increasing sharply in the San Francisco and New York metro areas.
Over the past three years, the typical price gain on an existing single-family home totaled $89,900, with price gains in all 182 markets. In 46 out of 182 markets, homeowners typically experienced price gains of over $100,000. The largest price gains were in San Francisco-Oakland-Hayward, California ($315,000); San Jose-Sunnyvale-Sta. Clara, California ($294,000); Anaheim-Sta. Ana Irvine, California ($279,500); Barnstable, Massachusetts ($220,600); and Boise-City-Nampa, Idaho ($206,300).