House prices up for almost 9 in 10 us metro areas

Photo credit: Michael Patrick

House prices increased in almost 9 out of every 10 metro areas in the USA, according to the National Association of Realtors.

The NAR report for the third quarter of 2013 shows that the large majority of metropolitan areas in the country saw property values rise year-on-year. The median price of existing single-family homes increased in 88 per cent of markets (144 out of 163) during the three months to September 2013 compared with the same period in 2012. 54 areas saw prices jump by double digits, while just 19 experienced falling prices.

The figures mark a slight improvement upon the 87 per cent recorded in the second quarter of 2013, and a significantly higher increase than the annual growth of 81 per cent recorded in the third quarter of 2012.

Overall, the median home price was $207,300 in the third quarter, up 12.5 per cent from $184,300 in 2012, the strongest year-over-year increase since the fourth quarter of 2005.

“Rising prices and higher interest rates have taken a bite out of housing affordability,” explains NAR Chief Economist Lawrence Yun. “However, we have the ongoing situation of more buyers than sellers in the market, so lower sales will help to take the pressure off home price growth and allow them to rise slowly at a single-digit growth rate in 2014.”

Despite affordability falling in the US, another NAR report shows that, based on the income required to purchase a median-priced home, shows most buyers can afford to purchase, although that number falls in pricier areas.