U.S. house prices up in third quarter but affordability slipped
BPC Staff Nov 12, 2015 | 9:37 pm
1 min read time
217 wordsAll Latest News, Real Estate and DevelopmentHome prices climbed in 87 percent of U.S. metropolitan areas in the third quarter, with gains nationwide slowing to a healthier pace, according to the National Association of Realtors, Bloomberg reported.
The median price of an existing single-family home rose from a year earlier in 154 of the 178 areas measured, the association said today in the report. In the second quarter, 93 percent of metropolitan areas had price increases.
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.
Meanwhile, the National Association of Home Builders said houses became slightly less affordable during the quarter.
In all, 62.2 percent of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $65,800. In the second quarter, 63.2 percent of homes sold were affordable to median-income earners, according to a release.
The national median home price increased slightly from $230,000 in the second quarter to $231,000 in the third quarter. Meanwhile, average mortgage rates edged higher from 3.99 percent to 4.18 percent in the same period.
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