Low inventory levels of moderately priced homes continue to stifle home sales and maintain the trend of increasing metro market prices according to the latest quarterly report (link is external) by the National Association of Realtors®.
The national median existing single-family home price in the third quarter was $266,900, up 4.8 percent from the third quarter of 2017 ($254,700).
The median sales price in the second quarter increased 4.9 percent from the second quarter of 2017.
Single-family home prices increased in 93 percent of measured markets last quarter, with 166 out of 178 metropolitan statistical areas1 (MSAs) showing sales price gains in the third quarter compared to a year ago. Eighteen metro areas (10 percent) experienced double-digit increases, down from 24 in the second quarter.
Total existing-home sales2, including single family homes and condos, decreased 2.6 percent to a seasonally adjusted annual rate of 5.273 million in the third quarter, down from 5.413 million in the second quarter. That number is 2.4 percent lower than the 5.403 million pace during the third quarter of 2017.
At the end of the third quarter, there were 1.88 million existing homes available for sale3, 1.1 percent above the 1.86 million homes for sale at the end of the third quarter in 2017. The average supply during the third quarter was 4.3 months – up from 4.2 months in the third quarter of last year.
National family median income rose to $76,6084 in the third quarter, but overall affordability decreased from a year ago because of higher mortgage rates and home prices. To purchase a single-family home at the national median price, a buyer making a 5 percent down payment would need an income of $64,480, while a 10 percent down payment would require an income of $61,086, and $54,299 would be necessary for a 20 percent down payment.
The five most expensive housing markets in the third quarter were the San Jose, California metro area, where the median existing single-family price was $1,300,000; San Francisco-Oakland-Hayward, California, $989,000; Anaheim-Santa Ana-Irvine, California, $830,000; urban Honolulu, $818,600; and San Diego-Carlsbad, $650,000.
The five lowest-cost metro areas in the second quarter were Youngstown-Warren-Boardman, Ohio, $97,600; Decatur, Illinois, $102,800; Cumberland, Maryland, $110,300; Wichita Falls, Texas, $115,600; and Elmira, New York, $121,600.
Metro area condominium and cooperative prices – covering changes in 61 metro areas – showed the national median existing-condo price was $244,100 in the third quarter, up 2.3 percent from the third quarter of 2017 ($238,600). Eighty-two percent of metro areas showed gains in median condo prices from a year ago.
Total existing-home sales in the Northeast sat at an annual rate of 680,000 (down 0.5% from last quarter) and are down 3.8 percent from a year ago. The median existing single-family home price in the Northeast was $301,500 in the third quarter, up 6.1 percent from a year ago.
In the Midwest, existing-home sales fell 0.3 percent in the third quarter and are 1.0 percent below a year ago. The median existing single-family home price in the Midwest grew 2.1 percent to $206,800 in the third quarter from the same quarter a year ago.
Existing-home sales in the South declined 4.4 percent in the third quarter but are 0.3 percent higher than the third quarter of 2017. The median existing single-family home price in the South was $234,300 in the third quarter, 3.4 percent above a year ago.
In the West, existing-home sales in the third quarter decreased by 2.9 percent and are 7.9 percent below a year ago. The median existing single-family home price in the West increased 4.8 percent to $395,500 in the third quarter from the third quarter of 2017.