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REALTOR®: Gains seen in nationwide median home prices

Wednesday, August 21, 2013

Median home prices continued to rise in majority of metropolitan areas in the second quarter. In fact, the nationwide year-over-year home price posted the highest gain in seven-and-a-half years, according to the National Association of REALTORS® (NAR).

The NAR quarterly report indicates 142 out of 163 metropolitan statistical areas (MSAs) showed gains based on closings in the second quarter compared with the second quarter of 2012. Fifty areas or 31 percent of the MSAs had double-digit gains.

NAR chief economist Lawrence Yun said tight inventory is continuing to drive home prices.  The nationwide average supply during the quarter was 5.1 months, compared with 6.4 months in the second quarter of 2012.

"There continue to be more buyers than sellers and that is placing pressure on home prices, with multiple bids common in some areas of the country," he said. "Areas with tighter supplies generally are seeing the strongest price growth, including markets such as Sacramento, Atlanta, Las Vegas, Naples, San Francisco and Los Angeles."

Silicon Valley Association of REALTORS® president Carolyn Miller said rising home prices in California, particularly in the San Francisco Bay Area and coastal regions, have impacted housing affordability in the region. She expects sales and prices to level out with the changing interest rates and expanding inventory. Right now, average supply in the Bay Area is at about 2.3 months. A six- to seven-month supply is typical in a normal California market, said Miller.

"California's housing market is among the top markets leading the housing recovery, with the San Francisco Bay Area rebounding stronger than ever, due to job growth in the tech industry," said Miller. "Slowly rising interest rates have impacted sales somewhat, though demand for homes in the region is still intense. Inventory is slowly growing and it is likely prices in the region will level out, signaling a return to more normal market conditions."

The national median existing single-family home price was $203,500 in the second quarter, up 12.2 percent from $181,300 in second-quarter 2012, which is the strongest year-over-year increase since the fourth quarter of 2005 when it surged 13.6 percent.

In the second quarter total existing-home sales, including single-family homes and condos, rose 2.4 percent from the first quarter, and were 12.3 percent above the second quarter of 2012. Sales were at the highest pace since the second quarter of 2007.

Regionally, existing-home sales in the Northeast were unchanged in the second quarter but are 9.1 percent above second-quarter 2012. The median existing single-family home price in the Northeast was $257,900, up 6.9 percent from a year ago.

In the Midwest, existing-home sales rose 2.3 percent and are 14.6 percent higher than a year ago. The median existing single-family home price in the Midwest increased 7.9 percent to $160,600 from the same quarter last year.

Existing-home sales in the South increased 3.2 percent and are 15.1 percent above second quarter-2012. The median existing single-family home price in the South was $180,700, up 11 percent from a year earlier.

In the West, existing-home sales rose 2.5 percent and are 7.4 percent above a year ago. The median existing single-family home price in the West surged 18.2 percent to $277,500 in the second quarter from second-quarter 2012.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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