Q2 Price Appreciation Up In 80 Percent Of Metro Markets

Second quarter earnings aren’t the only numbers rolling in. The National Association of Realtors is out with new Q2 data that shows four in five metro areas notched double-digit price gains in the second quarter of 2022.

According to NAR, 80 percent percent of metro markets–148 of 185–saw said double-digit annual price appreciation in median single-family existing-home sales prices. That’s up from 70 percent of metro markets in Q1.

Nationally, the median single-family existing-home price surpassed $400,000 for the first time, rising 14.2 percent from one year ago to $413,500. Year-over-year price appreciation eased slightly compared to the previous quarter’s 15.4 percent.

“Home prices have increased at a pace that far exceeds wage gains, especially for low- and middle-income workers,” said NAR Chief Economist Lawrence Yun. “Overall, the national price deceleration inevitably followed the softening sales, providing well-positioned prospective buyers a small measure of welcomed relief. The recent dips in mortgage rates will bring additional buyers to market, especially in those places where home prices are still relatively affordable and where jobs are being added.”

The South accounted for 44 percent of single-family existing-home sales in the second quarter and posted the largest price appreciation of 18.2 percent, according to NAR. Prices increased 12.7 percent in the West, 10.1 percent in the Northeast and 9.7 percent in the Midwest.

Half of the top 10 most expensive markets in the U.S. were in California, led by San Jose-Sunnyvale-Santa Clara ($1,900,000; up 11.8 percent); San Francisco-Oakland-Hayward ($1,550,000; up 11.9 percent); Anaheim-Santa Ana-Irvine  ($1,300,000; up 17.2 percent); Urban Honolulu ($1,145,000; up 17.3 percent); San Diego ($965,900; up 13.6 percent); Boulder ($933,400; up 11.8 percent); Naples-Immokalee-Marco Island, FL. ($850,000; up 28.9 percent); Los Angeles-Long Beach ($825,700; up 9.2 percent); Seattle-Tacoma-Bellevue ($818,900; up 14.4 percent) and Boston-Cambridge ($722,200; up 8.9 percent).

Florida accounted with seven of the top 10 metro areas with the largest year-over-year price gains.