BAM’s Key Details

  •  NAR’s latest quarterly report show 98% of metro areas saw home prices rise year-over-year.
  • The top 10 metros with the largest home price increases are on the east coast, with seven in Florida.
  • The majority of the most expensive metros are on the West Coast, with five in California. 

In the third quarter of 2022, mortgage rates reached 7%, resulting in significant drops in the number of home sales, listings, and home showing traffic.

But that doesn’t mean there’s a decline in numbers across the board. According to the National Association of Realtors®’ latest quarterly report, 98% of metro areas saw home prices rise year-over-year.

Here’s a breakdown of the third quarter’s home price appreciation, including the 10 metros with the largest home price increases. 

Home Price Increases

Of the 185 markets NAR measured in Q3, 181 saw home price gains year-over-year. The national median single-family existing-home price increased 8.6% to $398,500. 

While continued home price appreciation is good news for sellers aiming to build more equity, the rate of appreciation has slowed. Last quarter, home price gains year-over-year were still in the double digits, at 14.2%.

In Q3, less than half of metro markets (46%) saw annual price appreciation in the double digits. Last quarter, that number was 80%. 

10 Metros with the Largest Home Price Increases

The top 10 metros with the largest home price increases all saw gains of over 18% year-over-year. Here’s the full list: 

  1. North Port-Sarasota-Bradenton, FL – 23.8%
  2. Lakeland-Winter Haven, FL – 21.2% 
  3. Myrtle Beach-Conway-North Myrtle Beach, SC-NC – 21.1%
  4. Panama City, FL – 20.5%
  5. Deltona-Daytona Beach-Ormond Beach, FL – 19.6% 
  6. Port St. Lucie, FL – 19.4%
  7. Greenville-Anderson-Mauldin, SC – 18.9%
  8. Kingsport-Bristol-Bristol, TN-VA – 18.8%
  9. Tampa-St. Petersburg-Clearwater, FL – 18.8%
  10. Ocala, FL – 18.8%

All cities on the top 10 list are on the east coast, with seven in Florida.

10 Most Expensive Markets

The west coast, by contrast, makes up the majority of the 10 most expensive cities, with California claiming five spots on the list.

  1. San Jose-Sunnyvale-Santa Clara, CA – $1,688,000; 2.3%
  2. San Francisco-Oakland-Hayward, CA – $1,300,000; -3.7%
  3. Anaheim-Santa Ana-Irvine, CA – $1,200,000; 9.1%
  4. Urban Honolulu, HI – $1,127,400; 7.6%
  5. San Diego-Carlsbad, CA. – $900,000; 5.9% 
  6. Los Angeles-Long Beach-Glendale, CA – $893,200; 3.8%
  7. Boulder, CO – $826,900; 7.5%
  8. Naples-Immokalee-Marco Island, FL – $746,600; 16.7%
  9. Seattle-Tacoma-Bellevue, WA – $741,300; 4.6%
  10. Boston-Cambridge-Newton, MA-NH – $698,900; 6.2%

The more expensive markets on the West Coast will likely experience some price declines following this rapid price appreciation, which is the result of many years of limited home building. The Midwest, with relatively affordable home prices, will likely continue to see price gains as incomes and rents both rise.

Lawrence Yun

NAR Chief Economist

Affordability Remains a Concern for Many

As far as affordability goes, the combination of home price appreciation and higher mortgage rates means buyers are either changing search parameters to stay within budget or backing out of the market altogether. 

The median income needed to buy a typical home has risen to $88,300—almost $40,000 more than in 2019. And the monthly mortgage payment on a single-family home, assuming a 20% down payment, increased 50% (or $614) year-over-year to $1,840. 

Much lower buying capacity has slowed home price growth and the trend will continue until mortgage rates stop rising. The median income needed to buy a typical home has risen to $88,300 – that’s almost $40,000 more than it was prior to the start of the pandemic, back in 2019.

Lawrence Yun

NAR Chief Economist

As an agent, work with clients to help them understand all the numbers—what’s increasing, what’s decreasing, and what it means for them as buyers or sellers.