Buyers Face Double-Digit Home Price Gains Across Metro Areas

 

Home prices continue to climb in a market with limited number of homes for sale and high buyer demand. The majority of major metros across the U.S. posted double-digit price gains in the third quarter. Single-family existing home prices increased in all 181 metro areas tracked in the National Association of REALTORS®’ latest quarterly report, released Thursday.

The price of single-family homes surged 12% year over year to $313,500. The Western region of the U.S. led the country in price appreciation, up 13.7%, followed closely by the Northeast at 13.3%, the South at 11.4%, and the Midwest at 11.1%.

Sixty-five percent of the metro areas tracked by NAR reported double-digit price gains compared to a year ago. As a comparison, in the second quarter, less than 10% of the metro areas recorded double-digit increases.

The housing markets seeing the largest price spikes in the third quarter were led by Bridgeport, Conn. (27.3%); Crestview, Fla. (27.1%); Pittsfield, Mass. (26.9%); Kingston, N.Y. (21.5%); Atlantic City, N.J. (21.5%); Boise, Idaho (20.6%); Wilmington, N.C. (20.6%); Barnstable, Mass. (19.4%); Memphis, Tenn. (19.1%); and Youngstown, Ohio (19.1%).

“In light of the pandemic, prices jumped in a number of metros that contain larger properties and open space—where families could find extra rooms, including areas for an at-home office,” says Lawrence Yun, NAR’s chief economist.