U.S. home prices rose 4% compared to the last quarter of 2022, hitting $378K. But only 18% of metro markets saw double-digit growth in 4Q. In 3Q, it was 46%.

WASHINGTON – About nine out of 10 U.S. metro markets registered home price gains in the fourth quarter of 2022 despite mortgage rates eclipsing 7%, according to the National Association of Realtors®’ (NAR) four quarter (4Q) report for 2022.

Of the 186 metros tracked, 18% saw double-digit price increases over the same time period, down from 46% in the third quarter of 2022.

Year-to-year, the national median single-family existing-home price rose 4.0% to $378,700. Year-over-year price appreciation decelerated compared to the previous quarter’s 8.6%.

“A slowdown in home prices is underway and welcomed, particularly as the typical home price has risen 42% in the past three years,” says NAR Chief Economist Lawrence Yun. He bases that on housing costs that have far surpassed wage increases and consumer price inflation of 15% and 14%, respectively, since 2019.

Among the major U.S. regions, the South saw the largest share of single-family existing-home sales (45%) in the third quarter, with year-over-year price appreciation of 4.9%. Prices grew 5.3% in the Northeast, 4.0% in the Midwest, and 2.6% in the West.

“Even with a projected reduction in home sales this year, prices are expected to remain stable in the vast majority of the markets due to extremely limited supply,” Yun says. “Moreover, there are signs that buyers are returning as mortgage rates decline, even with inventory levels near historic lows.”

The top 10 metro areas with the largest year-over-year price increases all recorded gains of at least 14.5%, with seven of those markets in Florida and the Carolinas. Those include:

1. Farmington, N.M. (up 20.3%)
2. North Port-Sarasota-Bradenton, Fla. (19.5%)
3. Naples-Immokalee-Marco Island, Fla. (17.2%)
4. Greensboro-High Point, N.C. (17.0%)
5. Myrtle Beach-Conway-North Myrtle Beach, S.C.-N.C. (16.2%)
6. Oshkosh-Neenah, WI (16.0%)
7. Winston-Salem, N.C. (15.7%)
8. El Paso, Texas (15.2%)
9. Punta Gorda, Fla. (15.2%)
10. Deltona-Daytona Beach-Ormond Beach, Fla. (14.5%)