The median sales price of a home in all but one of the 183 metro areas monitored by the National Association of Realtors rose in the third quarter, while 78% of the markets experienced double-digit increases, a decline from the second quarter, when 94% of markets saw double-digit increases.
Three markets saw annual increases of more than 30%, down from 12% in the second quarter, the NAR said in a press release.
“Home prices are continuing to move upward, but the rate at which they ascended slowed in the third quarter,” NAR chief economist Lawrence Yun said. “I expect more homes to hit the market as early as next year, and that additional inventory, combined with higher mortgage rates, should markedly reduce the speed of price increases.”
Overall, the national median sales price of a single-family existing home rose 16% year over year in the third quarter to $363,700, down from a 22.9% increase in the second quarter. By region, the Northeast led the way by price growth with a 17.5% rise, followed by the South, with a 14.9% gain, the Midwest, with a 10.7% increase, and the West, which saw prices climb 10.3%.
“While buyer bidding wars lessened in the third quarter compared to early 2021, consumers still faced stiff competition for homes located in the top ten markets,” Yun said. “Most properties were only on the market for a few days before being listed as under contract.”