Approximately nine out of 10 metro markets registered home price gains in the fourth quarter of 2022, according to the National Association of Realtors. Some 18 percent of the 186 tracked metro areas registered double-digit price increases over the same time period, down from 46 percent in the third quarter of 2022.
Compared to a year ago, the national median single-family existing-home price rose 4.0 percent to $378,700. Year-over-year price appreciation decelerated when compared to the previous quarter’s 8.6 percent.
“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 percent and 14 percent, respectively, since 2019. “Far fewer metro markets experienced double-digit price gains in the latest quarter.”
The South saw the largest share of single-family existing-home sales at 45 percent, with year-over-year price appreciation of 4.9 percent. Prices grew 5.3 percent in the Northeast, 4 percent in the Midwest and 2.6 percent in the West.
While no Western cities made the top 10 metro areas with the largest year-over-year price increases, half of the top 10 most expensive markets in the U.S. were in California. Those included San Jose-Sunnyvale-Santa Clara ($1,577,500; -5.8 percent); San Francisco-Oakland-Hayward ($1,230,000; -6.1 percent); Anaheim-Santa Ana-Irvine ($1,132,000; -1.6 percent); San Diego-Carlsbad ($857,000; 1.4 percent); Los Angeles-Long Beach-Glendale ($829,100; -1.3 percent).