Metro home prices increased in all areas during the third quarter of 2020, with 65% of metros reporting double-digit price gains, according to the National Association of Realtors.
The gains were due largely to low mortgage rates and a “depleted” housing inventory nationwide, according to NAR.
“Favorable mortgage rates will continue to bring fresh buyers to the market,” stated NAR Chief Economist Lawrence Yun. “However, the affordability situation will not improve even with low interest rates because housing prices are increasing much too fast.”
The national median existing single-family home price increased 12.0% year-over-year to $313,500.
Regionally, home prices grew 13.7% in the West, 13.3% in the Northeast, 11.4% in the South and 11.1% in the Midwest during the quarter.
“At this rate, home prices were growing four times as fast as median family income,” NAR stated.
NAR’s full quarterly report can be found here.
