The temperature may be dropping, but it’s not cooling off high home prices in much of the country.

Prices rose in 82% of the housing markets in the third quarter of this year, according to the National Association of Realtors®. That was compared with 58% in the previous quarter.

Single-family home prices ticked up 2.2% from last year, to reach $406,900 in the third quarter. The higher price tags are on top of mortgage rates that briefly surpassed 8% this fall and a severe shortage of homes for sale.

The result is homebuyers who can find a home for sale that meets their needs are footing a larger monthly bill. Someone buying a home today is likely to spend nearly 20% more than they would have just a year earlier largely due to higher mortgage rates. They needed to earn at least $100,000 a year to afford a down payment in nearly half, 45.7%, of housing markets.

“The housing market shouldn’t be accessible only to those who are paying in cash nor become a playground for the wealthy,” NAR Chief Economist Lawrence Yun said in a statement.

The report looked at existing, single-family homes in 221 metropolitan areas in the third quarter of the year.

The markets with the largest price increases

Traditionally cheaper housing markets in the Midwest notched some of the largest price gains.

Home prices in Fond du Lac, WI, soared the most, with prices increasing 18.9% year over year. The median list price for homes in the metro was $307,400 in October, according to Realtor.com® data. (This includes new construction.)

The metro was followed by Hickory, NC, at 17.1%; Oshkosh, WI, at 15.2%; Green Bay, WI, at 14.8%; and Reading, PA, at 14.7%.

Rounding out the top five were Newark, NJ, at 14.3%; Dayton, OH, at 13.7%; Fort Wayne, IN, at 12.9%; Farmington, NM, at 12.7%; and Kankakee, IL, at 12.6%.

The markets where prices fell the most

Meanwhile, home prices fell the most in some of the markets that experienced the largest run-up in prices during the COVID-19 pandemic.

Home prices dropped by 10.3% in Austin, TX, the capital of Texas. The metro was followed by Phoenix, at -1.5%; Salt Lake City, at -1.2%; Dallas, at -1.1%; and Houston, at -1.1%.

“Following the big price changes during the last several years, it’s natural to witness momentary swings in prices,” Yun said. “Some markets that experienced sizable home price gains since 2020 have turned lower, resulting in temporary relief for prospective homebuyers. Also, a few markets in the West that experienced price declines in the prior quarter have seen prices rise again.”

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