The median price of existing single-family homes in the country climbed to $ 313,500 in the third quarter, up 12% from last year, according to a report by the National Association of Realtors. At that price, a family would have to pay $ 1,059 for a monthly mortgage payment and earn $ 50,819 a year to afford it.
Home prices have increased four times faster than the median family income, which has increased at a rate of 3%.
Median selling prices of existing single-family homes are up from a year ago in the 181 metropolitan areas measured in the report, and 65% saw double-digit price increases.
Prices are rising in large part due to the combination of low mortgage rates that attract buyers and a limited supply of homes available to buy.
While all regions of the country saw year-over-year price increases, these were led by the West, which rose 13.7%, followed closely by the Northeast, in 13.3% increase. Home prices in the South rose 11.4%, while the Midwest saw prices rise 11.1%.
The metropolitan areas with the largest price increases in the third quarter were Bridgeport, Connecticut, with prices up 27.3%, Crestview, Florida, up 27.1%, Pittsfield, Mass., Up 26, 9%, Kingston, New York, up 21.5%, and Atlantic City, New Jersey, up 21.5%.
Many first-time buyers, drawn to low interest rates, find that the down payment required to buy an entry-level home is growing faster than they can save.
“As house prices rise, both too quickly and too sharply, first-time buyers will find it increasingly difficult to find a down payment,” Yun said. “The transformation of raw land into developable lots and a new supply is clearly needed to help tame the growth in house prices. ”
Eight of America’s 10 most expensive metropolitan areas are located in the west, the remaining two in the east. The areas with the highest median prices are San Jose, Calif., With a median price of $ 1.4 million, San Francisco at $ 1.125 million, Anaheim, Calif., At $ 910,000, Honolulu, Hawaii, at $ 866,200, and San Diego at $ 729,000.