But some markets still have fast-rising prices
The US median home price increased just 4.8% in the third quarter of 2018, the slowest pace since the second quarter of 2016.
The median sales price of a single-family or condo home in Q3 2018 was $256,000, 1% higher than in the previous three months.
Almost half (74) of the 150 metros analyzed by ATTOM Data Solutions saw a slower rate of appreciation than a year earlier, including Los Angeles, Chicago, Dallas-Fort Worth, Houston, and Miami; all increased in single-digits year-over-year.
"The continued slowdown in the rate of home price appreciation nationwide and in many local markets is a rational response to worsening home affordability — which has deteriorated at an accelerated pace this year due to rising mortgage rates," said Daren Blomquist, senior vice president at ATTOM Data Solutions.
There’s still plenty of heat
There were still plenty of markets posting double-digit gains though including San Jose, California; Boise, Idaho; Las Vegas, Nevada; Grand Rapids, Michigan; Lakeland, Florida; Colorado Springs, Colorado; Dayton, Ohio; San Francisco, California; and Atlanta, Georgia.
"Housing affordability is becoming an increasingly big issue, especially in the western U.S. where many markets have not seen adequate new construction — putting substantial upward pricing pressure on resale homes," said Matthew Gardner, chief economist with Seattle-based Windermere Real Estate, noting that the rate of home price appreciation in the Seattle metro area slowed to the slowest pace since Q4 2014.
He added that in Seattle home price growth is likely to continue to slow until incomes are able to catch up, despite strong employment growth.
Sellers gaining average $61,232 since purchase
The data reveals that the average home seller in Q3 2018 gained $61,232 since purchase; a 32.3% return on the original purchase price.
Those with the highest average home seller percentage gains were in San Jose where their return averaged 108.7%.
Distressed sales accounted for 11.6% of all US single family home and condo sales in Q3 2018, up from an 11-year low of 11.2% in the previous quarter but still down from 12.8% in Q3 2017.
