Although the housing market is transitioning from the ferocious seller’s market of a year ago to more of a buyer’s market, we have still seen home price increases across most metro markets. In fact, 98% of metro markets saw higher home prices in Q3 2022. According to the National Association of Realtors® (NAR), home prices rose 8.6% in Q3, with 46% of metros seeing double-digit price growth. Although this may seem higher than most would think, it is important to note that 80% of metros saw double-digit price growth in Q2 of this year. Therefore, the pace of price growth is certainly slowing down. Interestingly and perhaps not surprisingly, 70% of the top 10 metro markets for home price growth were in The Sunshine State!
Top 10 metro markets for home price growth
- North Port-Sarasota-Bradenton, FL: 23.8%
- Lakeland-Winter Haven, FL: 21.2%
- Myrtle Beach-Conway-North Myrtle Beach, SC-NC: 21.1%
- Panama City, FL: 20.5%
- Deltona-Daytona Beach-Ormond Beach, FL: 19.6%
- Port St. Lucie, FL: 19.4%
- Greenville-Anderson-Mauldin, SC: 18.9%
- Kingsport-Bristol-Bristol, TN-VA: 18.8%
- Tampa-St. Petersburg-Clearwater, FL: 18.8%
- Ocala, FL: 18.8%
Home affordability remains as a persistent challenge for Americans. As evidenced by this analysis, home prices are remaining stubbornly high as of the third quarter, even if the pace of the price growth is slowing down. At the national level, the monthly mortgage payment on a typical existing single-family home with a 20% down payment was $1,840. While this is a marginal increase from the second quarter ($1,837), it is a significant year-to-year jump of 50% ($614). As of the third quarter, the typical U.S. family is spending 25% of their income on mortgage payments. This figure is significantly higher than the 17.2% we saw just a year earlier. Add in rising mortgage rates and higher price tags for basic necessities due to inflation and you can see the reasons for the challenges in home affordability.
Are you looking to buy or sell real estate in the South Florida market? We can help! Contact Natasha at Live South Florida Realty, Inc. today! In addition, be sure to download the free Florida Home Search app to have the power of the South Florida MLS right on your mobile device.