WASHINGTON–During the first quarter of this year home prices fell in more parts of the United States than they have in more than decade, when nearly a third of metropolitan areas posted annual price declines, according to new data from the National Association of Realtors.
Markets seeing the biggest declines were primarily in California and the Mountain West, with San Francisco posting a 14.5% median single-family existing-home sale-price decline versus one year earlier, and San Jose median prices falling 13.7%.
Towns that boomed during the pandemic, such as Austin, Texas and Boise, Idaho, also posted price declines of more than 10%, according to the NAR.
According to the Realtors’ group, home sales have been falling due to higher mortgage rates and a mix of supply and demand. Overall, prices declined on an annual basis in 31% of the 221 metro areas tracked by NAR, the highest percentage in 11 years.
“Generally speaking, home prices are lower in expensive markets and higher in affordable markets,” said Lawrence Yun, NAR’s chief economist. But given the inventory shortage, price declines could be short-lived, he added.
Average Price: $371K
Nationwide, the median single-family existing-home sale price fell 0.2% in the first quarter from a year earlier to $371,200, the first year-over-year price decline since the first quarter of 2012, the NAR reported.
Meanwhile, Median prices rose by more than 10% from a year earlier in 7% of the 221 metro areas, a deceleration from the fourth quarter, when 18% of metro areas reported double-digit-percentage growth, NAR said.
In the first quarter, the typical monthly mortgage payment for a single-family home rose to $1,859, a 33% increase from $1,397 a year earlier, NAR said.
Big Gains in Some Markets
The metro area posting the strongest median-price increase was Kingsport, Tenn., which was up 18.9% from a year earlier, followed by the Oshkosh, Wis. metro area (up 16.5%) and Warner Robins, Ga. (up 16.2%), the NAR said.