Home Price Gains Reported in 60% of US Metro Areas in Q2

According to the latest quarterly report from the National Association of Realtors® (NAR), almost 60% of metro markets—or 128 out of 221—registered home price gains in 2023Q2. The increases occurred even as 30-year fixed mortgage rates fluctuated between 6.28% and 6.71%. Of the 221 tracked metro areas that reported an increase, a full 5% registered double-digit increases over the same period, down 7% from 2023Q1.

NAR notes that compared to a year ago, the national median single-family existing-home price has declined 2.4% to $402,600. In Q1, the national median price deteriorated by only 0.2% year-over-year.

Among the major US regions, the South experienced the largest share of single-family existing-home sales in Q2, up 46%, but with year-over-year price depreciation of 2.2%. Prices increased by 3.2% in the Northeast and 1.4% in Midwest, while the West reported prices dropping 5.8%.

Adding additional background and his analysis to the report, NAR Chief Economist Lawrence Yun said:

“Home sales were down due to higher mortgage rates and limited inventory. Affordability challenges are easing due to moderating and, in some cases, falling home prices, while the number of jobs and incomes are increasing.

Interestingly, price declines occurred in some of the fastest job-creating markets. Prices in these areas are trying to land on better fundamentals after several years of skyrocketing increases. In fact, the number of homes receiving multiple offers, alongside continuing job and wage gains, signal price slides may already be a thing of the past.”