A new quarterly market report from the National Association of Realtors (NAR) has arrived! And apparently, Austin-Round Rock is leading the price gains. In general, median sales prices rose for existing single-family homes in all but one of the 183 measured markets in the third quarter of 2021. This is something we already saw in the first and second quarters, as well.
In a statement, the Association attributed the increase to a strong homebuyer demand and limited housing supply. From one year ago, the median sales price of single-family existing homes rose 16% to $363,700, increasing $50,300. This represents a slower pace when compared to the preceding quarter (22.9%).
In addition, 78% of those metro areas experienced double-digit year-over-year rises, though in only three of them that gain surpassed 30%. It’s worth mentioning that both indicators registered lower increases than in the previous quarter.
Nevertheless, the markets with the highest year-over-year price gains were:
- Austin-Round Rock, Texas (33.5%)
- Naples-Immokalee-Marco Island, Florida (32.0%)
- Boise City-Nampa, Idaho (31.5%)
- Ocala, Florida (29.7%)
- Punta Gorda, Florida (27.5%)
- Salt Lake City, Utah (26.2%)
- Phoenix-Mesa-Scottsdale, Arizona (25.8%)
- Sebastian-Vero Beach, Florida (25.7%)
- Port St. Lucie, Florida (24.9%)
- New York-Jersey City-White Plains, N.Y.-N.J. (24.5%)
Austin-Round Rock showed the highest price gain in Real Estate IQ’s latest market report measured markets. In September, the Median Sales Price in the area reached $450,000, a 28.5% increase than the same period last year.
However, there is some good news as well. The markets are starting to show somewhat of a calming trend compared to the prior month – which can be seen especially in the Days on the Market and the number of Active Listings. In Austin-Round Rock, for instance, Active Listings grew 10.2% in a monthly comparison, and houses remained on the market for three more days.
“Home prices are continuing to move upward, but the rate at which they ascended slowed in the third quarter,” observed NAR chief economist Lawrence Yun. “While buyer bidding wars lessened in the third quarter compared to early 2021, consumers still faced stiff competition for homes located in the top ten markets. Most properties were only on the market for a few days before being listed as under contract,” he said.
Overall, despite some indicators seeming to have found momentary stability, the market remains highly competitive and quite overpriced. The question is, then, whether this tendency is here to stay. About this, the NAR chief economist shared some insights: “I expect more homes to hit the market as early as next year, and that additional inventory, combined with higher mortgage rates, should markedly reduce the speed of price increases.”
But what if we told you you didn’t have to wait until next year to find a good deal? Something big is coming to Real Estate IQ, and you can be the first to hear about it!
Disclaimer: The blog articles are intended for educational and informational purposes only. Nothing in the content is designed to be legal or financial advice.