Industry NewsMarkets & Economy

Q3 home prices show strongest growth since 2006

Shrinking inventory deterring some first-time buyers

Home prices and home sales both showed strong annual growth during the third quarter, according to the latest report by the National Association of Realtors. The national median existing single-family home price jumped 7.6 percent from a year ago, to $186,100 -- the strongest year-over-year increase for any quarter since first-quarter 2006, when prices were up 9.4 percent from the previous year. Sales of existing homes rose 10.3 percent during the third quarter, to a seasonally adjusted annual rate of 4.68 million, up from 4.25 million a year ago. Median prices posted annual gains in 120 of 149 metros tracked, up from 110 metros showing gains in the second quarter of 2012 and 39 metros with price appreciation during the third quarter of 2011.Inventory of existing homes for sale was down 20 percent from a year ago, to 2.32 million. The combination of rising prices and tight inventory on a quarterly basis indicate that the...