Washington, DC, August 12, 2021 (GLOBE NEWSWIRE) –

Key highlights

The average selling price of existing single-family homes rose in 99% of the measured metropolitan areas year-over-year in the second quarter of 2021, with double-digit increases in 94% of the markets. The average single-family home selling price of existing homes rose 22.9% to $ 357,900 , an increase of $ 66,800 over the previous year. Over a period of three years, 46 markets posted gains of over $ 100,000. The monthly mortgage payment on a typical existing single family home rose to $ 1,215, and the income a family typically needs to buy an existing single family home rose to $ 58,314.

The persistently low housing stock, combined with record-low mortgage rates that are fueling housing demand, resulted in an increase in median sales prices for existing single-family homes in all but one of 183 measured markets in the second quarter of 2021, according to the latest quarterly report from the National Association of Realtors®, the shows that 94% of the 183 metropolitan areas also recorded double-digit price increases (89% in the first quarter of 2021)

The average selling price of existing single-family homes rose 22.9% to $ 357,900, up from $ 66,800 last year. All regions recorded double-digit year-on-year price growth, led by the Northeast (21.8%), followed by the South (21.0%), the West (20.9%) and the Midwest (17.1%).

"The rise in home prices and the accompanying accumulation of real estate assets were spectacular last year, but are unlikely to repeat themselves in 2022," said Lawrence Yun, chief economist at NAR.

"There are signs that more supply is entering the market and that demand is falling somewhat," he continued. "The real estate market seems to be moving from 'super hot' to 'warm' with much slower price increases."

However, 12 metropolitan regions reported year-on-year gains of over 30%, eight of them in the South and West regions, including Pittsfield, Massachusetts (46.5%); Austin-Round Rock, Texas (45.1%); Naples-Immokalee-Marco Island, Florida (41.9%); Boise City Nampa, Idaho (41%); Barnstable, MA (37.8%); Boulder, Colorado (37.7%); Bridgeport-Stamford-Norwalk, Connecticut (37.1%); Cape Coral-Fort Myers, Florida (35.6%); Tucson, Arizona (32.6%); New York-Jersey City-White Plains, NY-NJ (32.5%); San Francisco-Oakland-Hayward, California (31.9%); and Punta Gorda, Florida (30.8%).

Yun notes that home prices are rising sharply in the metropolitan areas of San Francisco and New York.

Over the past three years, the typical price gain for an existing single family home has been $ 89,900, with price gains in all 182 markets.2 In 46 of 182 markets, homeowners typically saw price gains in excess of $ 100,000. The biggest gains were in San Francisco-Oakland-Hayward, California ($ 315,000); San Jose-Sunnyvale-Sta. Clara, California ($ 294,000); Anaheim Sta. Ana Irvine, Calif. ($ 279,500); Barnstable, Massachusetts ($ 220,600); and Boise-City-Nampa, Idaho ($ 206,300).

As home prices rose, the monthly mortgage payment on an existing single family home financed with a 30-year fixed rate loan and a 20% down payment rose to $ 1,215. That is an increase of $ 196 over the previous year. The monthly mortgage payment increased, although the effective 30-year fixed-rate mortgage rate3 fell to 3.05% (previous year 3.29%). For all homebuyers, the share of monthly mortgage payments in median family income rose to 16.5% in the second quarter of 2021 (14.0% a year ago).

"The affordability of housing for first-time buyers is getting weaker," said Yun. "Unfortunately, the benefits of historically low interest rates are being eclipsed by rapidly rising home prices that require higher income to become a homeowner."

For first-time buyers, the mortgage payment for a 10% down payment rose to 25% of income (21.2% a year ago). A mortgage is affordable if the payout does not exceed 25% of the family income. 4

In 17 metropolitan areas, a family needed more than $ 100,000 to pay off a 10% mortgage loan rate (14 metropolitan areas in Q1 2021). These metropolitan areas are located in California (San Jose-Sunnyvale-Sta. Clara, San Francisco-Oakland-Hayward, Anaheim-Sta. Ana-Irvine, San Diego-Carlsbad, Los Angeles-Long Beach-Glendale), Hawaii (Urban Honolulu) , Colorado (Boulder, Denver-Aurora), Washington (Seattle-Tacoma-Bellevue), Florida (Naples-Immokalee-Marco Island), Connecticut (Bridgeport-Stamford-Norwalk), New York (Nassau, New York-Newark-Jersey City ), Massachusetts (Boston, Barnstable), District of Columbia-Virginia-Maryland-West Virginia (Washington-Arlington-Alexandria) and Oregon-Washington (Portland-Vancouver-Hillsboro).

There were only 84 stores in the metropolitan area where it would take a family less than $ 50,000 to buy a home, up from 104 stores in the first quarter of 2021. The cheapest markets – where a family can usually afford it to buy a home funded with a 10% down payment and income of $ 25,000 or less – located in the Rust Belt areas of Youngstown-Warren Boardman, Ohio ($ 24,401); Peoria, Illinois ($ 24,013); Cumberland, Maryland ($ 23,773); and Decatur, Illinois ($ 214,481).

"The housing supply will be crucial to dampen rising housing costs and rising rents," said Yun. "Any deterrent to producing more inventory, such as extending the eviction moratorium, will only worsen the current shortage," Yun said.

Yun noted that NAR has applied for a "quick release" of rent subsidy funds to help those who may face eviction.

The National Association of Realtors® is America's largest trade association and represents more than 1.4 million members who work in all aspects of the residential and commercial real estate industry.

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NOTE: NAR publishes quarterly median single-family home price data for approximately 183 Metropolitan Statistical Areas (MSAs). In some cases, MSA pricing may not match data published by state and local Realtor® associations. Any discrepancy may be due to differences in geographic coverage, product mix and timing. In the event of any discrepancies, Realtors® are advised that local data from their association may be more relevant for business purposes.

MSA (single family and condominium) house price data tables are published at https://www.nar.realtor/research-and-statistics/housing-statistics/metropolitan-median-area-prices-and-affordability. If there is insufficient data reported for an MSA in a given quarter, it will be listed as N / A. For areas not included in the tables, please contact the local Brokers Association®.

Information about NAR can be found at http://www.nar.realtor. These and other press releases will be published in the Newsroom under the "About NAR" tab.

1 Areas are generally urban statistical areas as defined by the US Office of Management and Budget. NAR adheres to the OMB definitions, although in some areas an exact match is not possible based on the available data. A list of the counties included in the MSA definitions can be found at: https://www.census.gov/geographies/reference-files/time-series/demo/metro-micro/delineation-files.html.

The regional median home price comes from a separate sample that includes rural areas and parts of some smaller large cities that are not included in this report; the regional percentage changes do not necessarily go parallel to the changes in the larger metropolitan areas. The only valid comparisons for median prices are based on the seasonality of purchasing behavior with the same period of the previous year. Quarterly comparisons do not compensate for seasonal changes, especially not the timing of families' buying behavior.

The median price measurement reflects the types of homes sold during the quarter and can sometimes be skewed by changes in the sales mix. For example, changes in the level of distressed sales that are heavily discounted can vary markedly in certain markets and affect percentage comparisons. Annual price measurements usually smooth out quarterly fluctuations.

NAR began recording average single-family home prices in metropolitan areas in 1979; The price series for condominiums in the metropolitan area goes back to 1989.

As there is a concentration of condominiums in high-priced metropolitan areas, the national median price for condominiums is often higher than the median price for single-family homes. In a given market area, condominiums typically cost less than single-family homes. As the reporting pattern will expand in the future, additional areas will be included in the condominium price report.

The seasonally adjusted annual rate for a given quarter represents the total number of actual sales for a year if the relative pace of sales for that quarter were maintained for four consecutive quarters. Total home sales include single family homes, townhouses, condominiums, and cooperative apartments.

2 NAR does not have 2018 data for Detroit-Warren-Dearborn, Michigan.

3 This is the effective mortgage rate based on Freddie Mac's 30 year fixed contract mortgage, points and fees.

4 Housing costs are burdensome if they make up more than 30% of income. The 25 percent percentage of income that mortgage payments make takes into account the idea that homeowners have additional expenses, including mortgage insurance, home insurance, taxes, and property maintenance expenses.

Quintin Simmons National Association of Realtors® qsimmons@realtors.org

source https://seapointrealtors.com/2021/08/12/94-of-metro-areas-saw-double-digit-price-growth-in-second-quarter-of-2021-news/

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