More Than 85 Percent Of Metro Areas Registered Home Price Increases In Q4

More than 85 percent of metro markets (189 out of 221) registered home price increases in the fourth quarter of 2023, according to the National Association of Realtors. Some 15 percent of those experienced double-digit price gains over the same period, up from 11 percent in the third quarter.

Among the major U.S. regions, the South posted the largest share of single-family existing-home sales at 45 percent in the fourth quarter, with year-over-year price appreciation of 3.2 percent. Prices also climbed 7.3 percent in the Northeast, 4.7 percent in the Midwest and 4.2 percent in the West.

“Homeowners have benefited from housing wealth accumulation. However, many homebuyers have been shocked at high housing costs, with a typical monthly mortgage payment rising from $1,000 three years ago to more than $2,000 last year,” said NAR Chief Economist Lawrence Yun. “This doubling in housing costs for recent home buyers is not included in the official consumer price index inflation calculations and contributes to the sense of dissatisfaction about the economy.”

The top 10 metro areas with the largest year-over-year median price increases all recorded gains of at least 14.8 percent. Those include Dayton, OH; Kingsport-Bristol-Bristol, TN; Fond du Lac, WI; Trenton, NJ; Salinas, CA; Newark, NJ; and Anaheim-Santa Ana-Irvine.

Eight of the top 10 most expensive markets in the U.S. were in California. Those markets include San Jose, Anaheim, San Francisco, Salinas, San Diego, Oxnard-Thousand Oaks-Ventura, San Luis Obispo and Los Angeles.