WASHINGTON–The median sales price of an existing single-family home in the U.S. continues to rise, but at a slower pace.
The price for such a home during the third quarter was up 8.6% from one year earlier to $389,500, but that reflected a slowdown from the second quarter’s 14.2% pace, according to new data released by the National Association of Realtors (NAR).
Indicative of the overall cooling, median prices were up 10% or more in 46% of the 185 metro areas tracked by NAR in the third quarter, compared with 80% of metro areas in the second quarter.
Home sales have also dropped for eight straight months through September, sliding from their springtime highs around the country.
Although it is common for values to decline in the winter months, analysts said the drops go beyond what is typically seen.
Biggest Decline in Maryland
The metro area to post the biggest fall in the third quarter from a year earlier was Cumberland, Md., where median prices were down 4.5%, followed by Bismarck, N.D., down 4.1%, and San Francisco, down 3.7%, the NAR said.
Still, prices in most areas remain higher than they were a year ago because supply remains limited. The third-quarter median sales price for single-family existing homes was up from a year earlier in 181 of the 185 metro areas, the NAR said.
‘Lower Buying Capacity’
“Much lower buying capacity has slowed home price growth, and the trend will continue until mortgage rates stop rising,” said Lawrence Yun, NAR’s chief economist in a statement.
The NAR’s housing-affordability index, which factors in family incomes, mortgage rates and the sales price for existing single-family homes, fell in September to its lowest level since June. The June reading was the lowest in decades, according to the organization.
The average rate on a 30-year fixed-rate mortgage was 6.95% in the week ended Nov. 3, according to mortgage-finance giant Freddie Mac, up from 3.09% a year earlier, noted CNBC.
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