Home-price growth moderated in a number of metropolitan areas in the second quarter, and national year-over-year price appreciation is at its slowest pace in two years, according to latest quarterly report by the National Association of Realtors.
The median existing single-family home price increased in 71 percent of measured markets. In the first quarter of 2014, price increases were recorded in 74 percent of measured markets. Furthermore, 19 areas in the second quarter had double-digit increases. In the first quarter, 37 did. Since the second quarter of 2013, the average number of areas to show price increase is 43.
Of 173 metropolitan statistical areas, 122 showed gains based on closings in the second quarter compared with the second quarter of 2013. However, 47 areas showed a lower median price from a year earlier.
While prices are increasing at a slower rate, it's also a healthier rate, said Lawrence Yun, NAR chief economist, in a statement.
"National median home prices began their most recent rise during the first quarter of 2012 but had climbed to unsustainable levels given the current pace of inflation and wage growth," he said. "At this slower but healthier rate, homeowners can continue steadily building equity. Meanwhile, for buyers, increased supply with moderate price gains is giving them better opportunities to choose."
Buyers purchasing an existing single-family home in the second quarter could, based on the national median, expect to pay $212,400. That figure is up 4.4 percent from a year prior ($203,400). The median price in the first quarter of 2014 had risen 8.3 percent from a year earlier.
Total existing-home sales increased 5.8 percent to a seasonally adjusted rate of 4.87 million in the second quarter from 4.60 million in the first quarter. They are still 4.5 percent below the 5.10 million pace set during the second quarter of 2013.
The largest regional increase in existing-home sales was in the Midwest, which saw a rise of 9.4 percent. The lowest regional increase was the South's, 3.4 percent.
