Home prices are rising in 87% of metro areas, but growth is slowing

by Jeff Andrews

Home prices continue to rise, but they’re rising in slightly fewer areas of the country.

Data released Thursday by the National Association of Realtors (NAR) shows that during the third quarter of 2024, home prices grew in 87% of the 226 metropolitan areas analyzed. That share is down from 89% in the second quarter.

In addition, 7% of metro areas analyzed experienced double-digit home-price growth, which is down from 13% in Q2 2024. While home prices grew, falling mortgage rates during the third quarter brought the typical mortgage payment down 2.4% year over year. The median home price was up 3.1%.

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“Home prices remain on solid ground as reflected by the vast number of markets experiencing gains,” NAR chief economist Lawrence Yun said in a statement. “Even with the rapid price appreciation over the last few years, the likelihood of a market crash is minimal. Distressed property sales and the number of people defaulting on mortgage payments are both at historic lows.”

NAR’s report is the latest in a string of evidence tied to slowing home-price appreciation. The August S&P CoreLogic Case-Shiller Index posted a 4.2% year-over-year gain, less than the 4.8% gain from July. The monthly index fell by 0.1%.

The U.S. Census Bureau‘s new-home sales report for both August and September showed year-over-year declines in home prices. September’s existing-home sales report from NAR shows a 3% annualized increased gain in median prices.

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In terms of single-family home sales, the South accounted for 45.1% of all transactions in Q3 2024 as prices there rose only 0.8% year over year. Prices were up the most in the Northeast (+7.8%), followed by the Midwest (+4.3) and the West (+1.8%).

Of the 10 metro areas with the highest year-over-year home-price growth, four were in Illinois. The highest growth was in Racine, Wisconsin, with a 13.7% gain. Of the 10 most expensive markets, eight were in California, with the other two being Honolulu and Boulder, Colorado.