Single-family homes and condos sold for a median price of $256,000 during the third quarter, up 1 percent from the previous quarter and 4.8 percent from a year ago, according to ATTOM Data Solutions’ Q3 2018 U.S. Home Sales Report.
According to the report, home price appreciation during the third quarter was the slowest pace since the second quarter of 2016.
“The continued slowdown in the rate of home price appreciation nationwide and in many local markets is a rational response to worsening home affordability — which has deteriorated at an accelerated pace this year due to rising mortgage rates,” ATTOM Senior Vice President Daren Blomquist said in a release.
“Markets not experiencing this price appreciation cooldown may have more of an affordability cushion to work with, but some are in danger of overheating if home price gains continue to run hot,” Blomquist added.
Compared with one year ago, the rate of home price appreciation during the third quarter slowed in 74 of the 150 metropolitan statistical areas (MSAs) analyzed by ATTOM, including Los Angeles, Chicago, Dallas-Fort Worth, Houston and Miami.
Home price appreciation did accelerate in 51 percent of MSAs, ATTOM found. Some of those MSAs included San Jose, Calif.; Boise, Idaho; Las Vegas; Grand Rapids, Mich.; Lakeland, Fla.; Colorado Springs, Colo.; Dayton, Ohio; San Francisco; and Atlanta.
During the quarter, median home prices were 11 percent above the pre-recession peak of $230,000 in the third quarter of 2005, and 77 percent above the post-recession low of $145,000 in the first quarter of 2012, ATTOM found.
Median home prices during the quarter remained above their pre-recession peak in103 of the 150 MSAs metro analyzed, including in Dallas-Fort Worth (86 percent above); Houston (85 percent above); Kennewick-Richland, Wash. (81 percent above); Greeley, Colo. (77 percent above); and San Antonio (73 percent above).
Homeowners who sold during the third quarter owned their homes an average of 8.23 years, up from an average homeownership tenure of 7.97 years in the previous quarter and up from 7.98 years one year ago, the report said.
Homeowners who sold during the quarter sold for an average of $61,232 more than their original purchase price, the highest average home seller price gain since the second quarter of 2007.