Price growth in much of the country is being fueled by a combination of rising employment, low borrowing costs and a tight supply of properties on the market. Sales of existing homes rebounded in September to the second-highest level since February 2007, the Realtors group reported last month.
“The demand for buying picked up speed in many metro areas during the summer as more households entered the market, encouraged by favorable mortgage rates and improving local economies,” Lawrence Yun, the group’s chief economist, said in a statement. “While price growth still teetered near or above unhealthy levels in some markets, the good news is that there was some moderation despite the stronger pace of sales.”
In the third quarter, 21 regions had price increases of 10 percent or more, down from 34 metro areas in the second quarter, the Realtors said. Prices declined in 24 areas.
The national median single-family home price was $229,000 in the third quarter, up 5.5 percent from a year earlier, the Realtors group said Thursday.
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The median price of an existing single-family home rose from a year earlier in 154 of the 178 areas measured, the group said in a report Thursday. In the second quarter, 93 percent of metropolitan areas had price increases.