As State President, Phillips will oversee the council’s activities within New York State and act as a liaison between the regional vice president, the council’s leadership team, and its staff.
“Home sales momentum is building,” said NAR Chief Economist Lawrence Yun.
Inventory for all property types declined in almost all areas, except for Rockland’s condo and co-op markets, the latter with an 84.6% gain. The Bronx led the region for new listings, with a 31.9% increase.
WASHINGTON—Approximately nine out of 10 metro markets registered home price gains in the fourth quarter of 2022 despite mortgage rates eclipsing 7%, according to the National Association of Realtors’ latest quarterly report. A total of 18% of the 186 tracked metro areas registered double-digit price increases over the same time period, down from 46% in the third quarter of 2022.
Among the major U.S. regions, the South saw the largest share of single-family existing-home sales (45%) in the third quarter, with year-over-year price appreciation of 4.9%. Prices grew 5.3% in the Northeast, 4.0% in the Midwest, and 2.6% in the West.
Compared to a year ago, the national median single-family existing-home price rose 4.0% to $378,700. Year-over-year price appreciation decelerated when compared to the previous quarter’s 8.6%.
“A slowdown in home prices is underway and welcomed, particularly as the typical home price has risen 42% in the past three years,” NAR Chief Economist Lawrence Yun said, noting these costs increases have far surpassed wage increases and consumer price inflation of 15% and 14%, respectively, since 2019. “Far fewer metro markets experienced double-digit price gains in the latest quarter.”
“Even with a projected reduction in home sales this year, prices are expected to remain stable in the vast majority of the markets due to extremely limited supply,” Yun added. “Moreover, there are signs that buyers are returning as mortgage rates decline, even with inventory levels near historic lows.”
The top 10 metro areas with the largest year-over-year price increases all recorded gains of at least 14.5%, with seven of those markets in Florida and the Carolinas. Those include Farmington, NM (20.3%); North Port-Sarasota-Bradenton, FL (19.5%); Naples-Immokalee-Marco Island, FL (17.2%); Greensboro-High Point, NC (17.0%); Myrtle Beach-Conway-North Myrtle Beach, SC-NC (16.2%); Oshkosh-Neenah, WI (16.0%); Winston-Salem, NC (15.7%); El Paso, TX (15.2%); Punta Gorda, FL (15.2%); and Deltona-Daytona Beach-Ormond Beach, FL (14.5%).
Half of the top 10 most expensive markets in the U.S. were in California, including San Jose-Sunnyvale-Santa Clara, CA ($1,577,500; -5.8%); San Francisco-Oakland-Hayward, CA ($1,230,000; -6.1%); Anaheim-Santa Ana-Irvine, CA ($1,132,000; -1.6%); Urban Honolulu, HI ($1,090,200; 3.4%); San Diego-Carlsbad, CA ($857,000; 1.4%); Los Angeles-Long Beach-Glendale, CA ($829,100; -1.3%); Naples-Immokalee-Marco Island, FL ($802,500; 17.2%); Boulder, CO ($759,500; -2.0%); Seattle-Tacoma-Bellevue, WA ($708,900; 1.3%); and Barnstable Town, MA ($668,100; 4.0%).
Roughly one in 10 markets (11%; 20 of 186) experienced home price declines in the fourth quarter of 2022.
“A few markets may see double-digit price drops, especially some of the more expensive parts of the country which have also seen weaker employment and higher instances of residents moving to other areas,” Yun added.
In the fourth quarter of 2022, housing affordability was exacerbated by elevated home prices and mortgage rates which roughly doubled from the beginning of the year. The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $1,969. This represents a 7% increase from the third quarter of last year ($1,838) but a major surge of 58%—or $720—from one year ago. Families typically spent 26.2% of their income on mortgage payments, up from 25% in the prior quarter and 17.5% one year ago.
Once again, first-time buyers looking to purchase a typical home during the fourth quarter of 2022 encountered challenges related to housing’s growing unaffordability. For a typical starter home valued at $321,900 with a 10% down payment loan, the monthly mortgage payment rose to $1,931, about 7% more than the previous quarter ($1,806) and an increase of almost $700, or 57%, from one year ago ($1,233). First-time buyers typically spent 39.5% of their family income on mortgage payments, up from 37.8% in the previous quarter. A mortgage is considered unaffordable if the monthly payment (principal and interest) amounts to more than 25% of the family’s income.
A family needed a qualifying income of at least $100,000 to afford a 10% down payment mortgage in 71 markets, up from 59 in the prior quarter. Yet, a family needed a qualifying income of less than $50,000 to afford a home in 16 markets, down from 17 in the previous quarter.
As State President, Phillips will oversee the council’s activities within New York State and act as a liaison between the regional vice president, the council’s leadership team, and its staff.
“Home sales momentum is building,” said NAR Chief Economist Lawrence Yun.
Inventory for all property types declined in almost all areas, except for Rockland’s condo and co-op markets, the latter with an 84.6% gain. The Bronx led the region for new listings, with a 31.9% increase.
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