Despite all the talk about cooling markets, increased inventory, and even July’s inflation drop in monthly price growth, home prices continue to rise

Most metro markets saw double-digit price gains in the second quarter of 2022, according to the National Association of REALTORS®’ latest quarterly report

Double-Digit Price Gains

Out of 185 markets tracked in NAR’s report, 148 (80%) saw double-digit annual price appreciation in single-family home sale prices. This is up from 70% in quarter one of 2022. 

In addition, the median single-family existing-home price increased nationally. The median sale price rose 14.2% year-over-year to $413,500. 

However, appreciation did slow slightly from 15.4% in quarter one. So while prices continue to trend up, the rate of appreciation is what’s cooling. 

Top 10 Metros with Largest Year-Over-Year Price Gains

The metros with the biggest price gains in quarter two all saw increases greater than 25%. Seven of the ten markets are located in Florida. 

metros-and-double-digit-price-gains-chart

Top 10 Most Expensive Markets in the US

As far as the most expensive markets in the US, California takes the lead, with five out of the ten most expensive markets in the Golden State. 

metros-median-price-and-year-over-year-price-growth-table

Lawrence Yun, NAR Chief Economist pointed to local job markets and supply availability as primary factors for home price growth. 

Job growth is positive and should be applauded, but supply restraints are creating unnecessary barriers to ownership opportunities.

Lawrence Yun

NAR Chief Economist

These barriers—namely affordability—are a major factor in declining consumer confidence and a softening of price appreciation.