Per-square-foot home-sales prices continue rising in region

The median sales price for single-family homes across the Washington region rose 6 percent to $666,600, making it one of nearly 90 percent of metro markets across the nation to see year-over-year growth in the second quarter.

Figures were reported by the National Association of Realtors (NAR).

“The record-high home prices in most metro markets bring good and bad news,” said NAR chief economist Lawrence Yun. “It’s terrific news for homeowners who are moving ahead in wealth gains. However, it’s difficult for those wanting to buy a home, as the required income to qualify has roughly doubled from just a few years ago.”

The quarterly report covers 223 of the nation’s metro areas, with 199 of them recording year-over-year growth during the second quarter. Compared to a year before, the national median single-family existing-home price grew 4.9 percent to $422,100 – a year-over-year rate of growth roughly in line with the rate of 5 percent recorded in the first quarter.

The Washington region’s median sales price of $666,600 placed it between Denver at $669,900 and Miami-West Palm Beach at $646,000.

That ongoing growth has pushed some prices (further) into the stratosphere. The median single-family existing-home price for the San Jose, Calif., metro area was $2,008,000 – the first time since NAR began tracking metro area single-family home prices in 1979 that a metro area’s median price exceeded $2 million.

(In the fall of 1979, the national median home-sales price was about $58,000, according to NAR data published at the time. Interest rates on mortgages had spiked to about 14 percent at the time, and would go higher.)

Also in the current top 10, price-wise: San Francisco-Oakland-Hayward, Calif. ($1,449,000; +8.5%); Anaheim-Santa Ana-Irvine, Calif. ($1,437,500; +15%); Honolulu ($1,101,500; +3.8%); San Diego-Carlsbad, Calif. ($1,050,000; +11.4%); Salinas, Calif. ($1,035,700; +13.1%); Oxnard-Thousand Oaks-Ventura, Calif. ($927,900; +2.5%); San Luis Obispo-Paso Robles, Calif. ($895,300; +0.5%); Boulder, Colo. ($888,300; +2%); and Naples-Immokalee-Marco Island, Fla. ($867,000; +2%).

Nearly 10 percent of markets (22 of 223) experienced home-price declines in the second quarter, up from 7 percent in the first quarter.

“Previously fast-gaining markets took a breather in the past quarter, including Nashville, Durham, Austin and several Florida metro areas,” Yun said.

About 55 metro areas had median sales prices below $300,000 for the quarter. Among the most affordable: Montgomery, Ala.; Gulfport-Biloxi, Miss.; Florence, S.C.; Syracuse, N.Y.; Lubbock, Texas; and Pittsburgh.

While the potential of lower mortgage-interest rates in coming months may help with affordability issues, rising prices still will put home-ownership out of reach for some.

All 2024 figures are preliminary and subject to revision.