Home prices across the country continue to rise through the roof during the coronavirus pandemic.
The median price for a single-family house in the U.S. jumped to $313,500 in the third quarter, a 12% increase compared with the price last year, the National Association of Realtors found in a report Friday.
The median prices of single-family homes skyrocketed from last year in 181 metro areas, with 65% experiencing price hikes in the double digits, the report said. And Americans would have to spend $1,059 for a monthly mortgage payment and must bring in $50,819 a year to be able to afford it.
Home prices in the West saw the most substantial home price jumps, up 13.7%, with home prices surging in the Northeast not far behind at 13.3%, according to the report. Median home prices in the South saw an 11.4% increase and prices jumped 11.1% in the Midwest.
Parts of the countries with the most significant increase in home prices included Bridgeport, Connecticut, with home prices surging 27.3% in the third quarter; Crestview, Florida (up 27.1%); Pittsfield, Massachusetts (up 26.9%); Kingston, New York (up 21.5%); and Atlantic City, New Jersey (up 21.5%).
Record low mortgage rates are driving up demand faster than the supply of listings in the U.S. with many Americans moving out of cities to the suburbs while working from home during the pandemic. And more consumers may continue to do so with the number of COVID-19 cases increasing.
A 30-year fixed-rate mortgage currently stands at 2.84% for the week ending Nov. 12, that's up from 2.78% last week and a decrease from a year earlier when rates were 3.75%, according to Freddie Mac.