Despite escalating mortgage rates and slumping home sales in the second quarter of 2022, more markets saw double-digit annual price gains compared to the prior quarter, according to the National Association of Realtors®’ (NAR) latest quarterly report.
Of the 185 metro areas tracked by NAR, 80% posted double-digit price gains, up from 70% in the first quarter.
Nationally, the median single-family existing-home price eclipsed $400,000 for the first time, rising 14.2% from one year ago to $413,500. However, year-over-year price appreciation still eased slightly compared to the previous quarter’s 15.4%.
In Florida, however, prices increased outpaced most of the nation. Of the top 10 metro areas with the largest year-over-year price gains, seven are in Florida:
Top 10 U.S. metro areas for prices gains in 1Q 2022
Fayetteville-Springdale-Rogers, Ark.-Mo. (31.9%)
Lakeland-Winter Haven, Fla. (31.4%)
Naples-Immokalee-Marco Island, Fla. (28.9%)
North Port-Sarasota-Bradenton, Fla. (28.8%)
Myrtle Beach-Conway-North Myrtle Beach, S.C.-N.C. (28.5%)
Tampa-St. Petersburg-Clearwater, Fla. (28.0%)
Cape Coral-Fort Myers, Fla. (27.8%)
Punta Gorda, Fla. (27.4%)
Ocala, Fla. (26.7%)
Ogden-Clearfield, Utah (25.5%)
“Home prices have increased at a pace that far exceeds wage gains, especially for low- and middle-income workers,” says NAR Chief Economist Lawrence Yun. “Overall, the national price deceleration inevitably followed the softening sales, providing well-positioned prospective buyers a small measure of welcomed relief.”
Regionally, the South – the section that includes Florida – accounted for 44% of single-family existing-home sales in the second quarter, and it had the largest price appreciation at 18.2%. Prices increased 12.7% in the West, 10.1% in the Northeast, and 9.7% in the Midwest.
The top 10 most expensive markets in the U.S., half of which were in California, included:
1. San Jose-Sunnyvale-Santa Clara, Calif. ($1,900,000; 11.8%)
2. San Francisco-Oakland-Hayward, Calif. ($1,550,000; 11.9%)
3. Anaheim-Santa Ana-Irvine, Calif. ($1,300,000; 17.2%)
4. Urban Honolulu, Hawaii ($1,145,000; 17.3%)
5. San Diego-Carlsbad, Calif. ($965,900; 13.6%)
6. Boulder, Colo. ($933,400; 11.8%)
7. Naples-Immokalee-Marco Island, Fla. ($850,000; 28.9%)
8. Los Angeles-Long Beach-Glendale, Calif. ($825,700; 9.2%)
9. Seattle-Tacoma-Bellevue, Wash. ($818,900; 14.4%)
10. Boston-Cambridge-Newton, Mass.-N.H. ($722,200; 8.9%)
Source: Article Written by Kerry Smith (AUGUST 11, 2022)