Stable Home Prices Ahead

Home prices
After a strong run up, home prices seem to be stabilizing moving forward.

After a bullish run for home prices over the past several years, the pace of acceleration appears to be slowing down. According to the Metropolitan Median Area Prices and Affordability report from the National Association of REALTORS®, single-family existing-home sales prices climbed in almost 90% of measured metro areas (166 of 186) in the fourth quarter of 2022. With this said, only 18% of metro markets had double-digit annual price increases, as opposed to 46% of markets in the previous quarter. The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $1,969 in the fourth quarter of 2022. This figure is up 58% year-over-year, largely due to a combination of higher home prices and mortgage interest rates.

Breakdown by region

Not surprisingly, the South region saw the largest share of single-family existing-home sales (45%) in the fourth quarter of 2022. As for year-over-year price appreciation by region, it was as follows:

  • Northeast region: +5.3%
  • South region: +4.9%
  • Midwest region: +4.6%
  • West region: +2.6%

Top 10 metro markets for year-over-year price increases

  • 1. Farmington, NM: +20.3%
  • 2. North Port-Sarasota-Bradenton, FL: +19.5%
  • 3. Naples-Immokalee-Marco Island, FL: +17.2%
  • 4. Greensboro-High Point, NC: +17.0%
  • 5. Myrtle Beach-Conway-North Myrtle Beach, S.C.: +16.2%
  • 6. Oshkosh-Neenah, WI: +16.0%
  • 7. Winston-Salem, N.C.: +15.7%
  • 8. El Paso, TX: +15.2%
  • 9. Punta Gorda, FL: +15.2%
  • 10. Deltona-Daytona Beach-Ormond Beach, FL: +14.5%

Summary

The slowdown in home prices is largely expected, particularly considering inflationary pressures and the resulting rising interest rates. According to the National Association of REALTORS® chief economists, Lawrence Yun: “A slowdown in home prices is underway and welcomed, particularly as the typical home price has risen 42% in the past three years.” Since 2019, home prices have exceeded wage increases and consumer price inflation by 15% and 14%, respectively. Therefore, a stabilization in home prices is certainly warranted.

Are you looking to buy or sell a home in the South Florida area? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download our free Florida Home Search app for your smartphone or tablet.

By natasha moore

REALTOR® with Live South Florida Realty, Inc.