Median home prices reach new high in third quarter
After eased price appreciation over the first half of the year, the median value on the housing market accelerated to an all-time high in the third quarter, adding to affordability concerns.
The median price for single-family homes and condominiums was $270,000 in the third quarter, an 8.3% jump from $256,000 a year earlier and up 2.9 % quarter-over-quarter from $262,500, according to Attom Data Solutions' Home Sales Report.
This marks the first time since the opening quarter of 2018 that annual appreciation went above 5%.
"The seven-year U.S. housing boom is back in high gear. After a series of relatively small price increase quarters, home prices saw quite the uptick, seller profits rose and the problem of distressed sales continued to fade, helping to make the third quarter the strongest in four years," Todd Teta, chief product officer at Attom Data Solutions, said in a press release.
"That all happened as mortgage rates sank back to near-historic lows, which clearly powered the market upward along with stock market surges and a continued strong economy. There had been signs before the latest surge of a cooling market, but they seem to have diminished, at least for now."
Median home prices increased annually in 95% of the housing markets analyzed in the report. Lansing, Mich., led all metro areas with a 25.1% increase, followed by 18.1% in Green Bay, Wis., and 16.7% in Johnson City, Tenn.
Of the markets with at least 1 million people, Philadelphia led the third quarter with a 12.3% increase. Jacksonville, Fla., followed with 10.8%, then came Detroit's 10.6% rise.
Three of the major metro areas had decreased annual appreciation. Kansas City, Mo., dropped 9.4%, San Jose, Calif., fell 3.3%, and Hartford, Conn., declined 0.3%.