Published On: January 29, 2016

Home Prices Sustain Steady Growth in Most Metro Areas in Third Quarter




WASHINGTON (November 12, 2015) — The encouraging lift–off in existing–home sales amidst ongoing inventory shortages kept home prices rising in most of the country during the third quarter, but overall price appreciation slowed to a healthier pace, according to the latest quarterly report by the National Association of Realtors®.

The median existing single–family home price increased in 87 percent of measured markets, with 154 out of 178 metropolitan statistical areas1 (MSAs) showing gains based on closings in the third quarter compared with the third quarter of 2014. Twenty–four areas (13 percent) recorded lower median prices from a year earlier.

There were slightly fewer rising markets in the third quarter compared to the second quarter, when price gains were recorded in 93 percent of metro areas. Twenty–one metro areas in the third quarter (12 percent) experienced double–digit increases, a decline from the 34 metro areas in the second quarter. Sixteen metro areas (9 percent) experienced double–digit increases in the third quarter of 2014.

Lawrence Yun, NAR chief economist, says there's no question the housing market had its best quarter in nearly a decade. "The demand for buying picked up speed in many metro areas during the summer as more households entered the market, encouraged by favorable mortgage rates and improving local economies," he said. "While price growth still teetered near or above unhealthy levels in some markets, the good news is that there was some moderation despite the stronger pace of sales."

(National Assoc of Realtors)