NAR: Home Prices Hit New Record High

Irving Hamilton
August 11, 2018

"There's still a chance for sales to break out this year".

The average homebuyer with a 5 percent down payment needed to earn $64,239 to afford a home at the median (nationally); the average homebuyer with a 10 percent down payment needed to earn $60,858; and the average homebuyer with a 20 percent down payment needed to earn $46,808. NAR reported that the average supply during the second quarter was 4.1 months, down just 0.1 month in the second quarter of 2017.

As of the end of the second quarter, there were 1.95 million existing-homes available for sale, about a 4.1-month supply at the current sales rate.

But a slowdown in sales, rising inventories and higher mortgage costs have cooled the rate of appreciation this year in D-FW.

Prices rose year-over-year in 90 percent of the 178 cities the Realtors surveyed in the second quarter. Nationwide median prices were a smidge higher at $269,000.

"The unaffordable conditions in numerous largest metro areas - especially in the West - continues to be a growing concern for many middle-class households aspiring to buy a home", Yun says in a statement. "Local governments need to acknowledge this glaring issue and ease some of the zoning laws, permitting processes and regulations that are slowing construction". The other most expensive metros in the nation were Anaheim-Santa Ana-Irvine, California, $830,000; urban Honolulu, $795,200; and San Diego-Carlsbad, $645,000.

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The cities with the largest second-quarter price declines were Decatur, Ill.

The median price, however, is the same as in June, indicating the housing market remains tight, Chris Bishop, the association's president, said in a statement. In the South particularly, existing home sales fell almost 3 percent in the second quarter but are still 0.6 percent higher than at the same time a year ago.

Regarding total sales of existing homes, including single family and condos, there was a 1.7 percent decrease to a seasonally adjusted rate of 5.41 million in the second quarter from the 5.51 million rate in the first quarter.

Yun did offer a little hope for home sales moving through the second half of the year; however, it is hinged on an increase in supply.

In the Northeast, the existing-home median was $288,900, up 2.3 percent year-over-year. At this rate, we're on pace to sell fewer existing homes this year than we did last year.

In the West, the existing-home median was $403,300, up 8.3 percent year-over-year.

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