U.S. median home prices moderate in most major markets

A home for sale on July 23, 2014,

A home for sale on July 23, 2014, in Huntington. Photo Credit: Steve Pfost

advertisement | advertise on newsday

Home price gains moderated across most of the nation in the second quarter as appreciation reached its slowest pace since 2012.

The median price fell from a year earlier in 47 of 173 metropolitan areas measured, the National Association of Realtors said in a report Tuesday. Eleven percent of areas had double-digit increases, compared with 37 in the previous quarter.

advertisement | advertise on newsday

Home-price appreciation is moderating as more listings come on the market and buyer demand slows. The inventory of previously owned homes for sale rose 6.5 percent in June from a year earlier to 2.3 million, according to the Realtors group. That’s up from a 13-year low of 1.8 million in January 2013.

“We’re entering this next phase of recovery where we shift down a gear to a more sustainable pace,” Paul Diggle, U.S. property economist for Capital Economics Ltd. in London, said in a phone interview before the data were released. “It’s not something to worry about — it’s something to be welcomed. It means price gains are at a more sustainable footing that is more in line with income growth.”

The median price for an existing single-family house in the three months through June was $212,400, up 4.4 percent from the second quarter of 2013. The median price during the first quarter rose 8.3 percent from a year earlier.

The best LI real estate news in your inbox weekly. Get the Real Estate newsletter!


Newsday.com now uses Facebook for our comment boards. Please read our guidelines and connect your Facebook account to comment.

You also may be interested in: