An overwhelming majority of the country’s metro areas saw an increase in sales prices as 2023 came to an end, reflecting an increasingly strong seller’s market.
According to the National Association of Realtors, a big 189 out of 221 metro areas nationally saw home price increases, representing 85% of those markets. Even more, roughly 15% of those 221 markets saw double-digit home price increases.
“Homeowners have benefited from housing wealth accumulation,” Lawrence Yun, chief economist with NAR, said in a statement breaking down the most recent trend lines.
The average single family home price as of the end of December was up to just a little under $392,000. That figure represents a 3.5% increase over the same period of time in late 2022.
The price increases were seen everywhere, with the Northeast showing the greatest growth at 7.3%, followed by the Midwest at 4.7%, and the West, with a 4.2% gain. While overall volume was up in the South, the year-over-year fourth quarter price increase came in at 3.2%
Whether the higher prices will continue into the first quarter, and indeed for the rest of the year, may well be determined by availability, said Yun, who noted that “increased homebuilding, along with lower mortgage rates, will not only improve housing affordability, but also help bring more homes onto the market in 2024.”
Monthly mortgage rates are also expected to play a role in the affordability question. The average payment on a starter home valued at $332,900 actually dropped from $2,146 in the late summer and early fall of last year to $2,120 between October and December.
By Garry Boulard
