Single-family home prices increased in 162 0f 178 of the nation’s metro areas in the second quarter of 2019, according to the National Association of Realtors’ metro affordability report released Wednesday. In the second quarter of 2019, the national median existing single-family home price hovered at $279,600, up 4.3 percent year-over-year.

Lower inventory and the need for new construction is leading to more competition and continuously increasing home prices, according to NAR’s chief economist Lawrence Yun.

“New home construction is greatly needed, however, home construction fell in the first half of the year,” Yun said in a statement. “This leads to continuing tight inventory conditions, especially at more affordable price points. Home prices are mildly reaccelerating as a result.”

In more than half of the metro areas tracked, the median home price increase more than 5 percent year-over-year. In total, 91 percent of the nation’s metros experienced increased home prices.

A number of high-priced metro areas were among the few that saw decreases. In the San Jose and Santa Clara, California-area, prices dropped 5.3 percent, in San Francisco and Oakland, home prices fell 1.9 percent and in Honolulu, Hawaii, prices decreased 1.2 percent. Those three metros, along with Anaheim and San Diego, were the highest priced metro areas in the country.

“Housing unaffordability will hinder sales irrespective of the local job market conditions,” Yun said. “This is evident in the very expensive markets as home prices are either topping off or slightly falling.”

The five lowest-cost metro areas were Decatur, Illinois; Youngstown, Ohio; Cumberland, Maryland; Binghamton, New York and Elmira, New York.

The national median income rose to $78,362 in the second quarter, but home price growth outpaced income growth, contributing to an overall decline in affordability.

“The exceptionally low mortgage rates will help with housing affordability over the short run,” Yun said. “But if the low interest rates are due to weakening economic confidence, as reflected from a correction in the stock market, then the low rates will not help with job growth and will eventually hinder home buying and home construction.”


Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription