Buyers Face Double-Digit Home Price Gains

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Real Estate

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.

“Favorable mortgage rates will continue to bring fresh buyers to the market,” Yun says. “However, the affordability situation will not improve even with low interest rates because housing prices are increasing much too fast.”

Indeed, rapidly rising home prices are taking a toll on affordability, Yun says. The monthly mortgage payment on a typical existing single-family home with a 30-year fixed-rate mortgage and 20% down payment increased to $1,059 in the third quarter. This is up from $1,019 in the second quarter.

The 6 priciest metro areas as of the third quarter were:

San Jose, Calif.: $1.40 million
San Francisco: $1.125 million
Anaheim, Calif.: $910,000
Urban Honolulu, Hawaii: $866,200
San Diego: $729,000
Los Angeles: $708,900