The National Association of Realtors latest quarterly report revealed that home prices increased year-over-year for every metro the NAR tracks for the third quarter of 2020.
"Favorable mortgage rates will continue to bring fresh buyers to the market," said Lawrence Yun, NAR chief economist. "However, the affordability situation will not improve even with low interest rates because housing prices are increasing much too fast."
According to the NAR, 65% of metros saw a double-digit price growth from 2019. That's 117 areas out of 181 in the third quarter compared to 15 metros in the second quarter. Metros with the largest gain in the third quarter including Bridgeport, CT; Crestview, FL; Pittsfield, MA; Kingston, NY; Atlantic City, NJ; Boise, ID; Wilmington, NC; Barnstable, MA; Memphis, TN and Youngstown, OH.
According to the report, the nation's median existing single-family home price jumped 12% year-over-year to $313,500.
"In light of the pandemic, prices jumped in a number of metros that contain larger properties and open space – where families could find extra rooms, including areas for an at-home office," said Yun.
"As home prices increase both too quickly and too significantly, first-time buyers will increasingly face difficulty in coming up with a down payment. Transforming raw land into developable lots and new supply are clearly needed to help tame the home price growth," added Yun.
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