Home Prices Rise in 96% of US Metros
Didier Malagies • August 14, 2020
Home Prices Rise in 96% of US Metros
Jordan Borchard posted in
Housing in Housing News
Home Prices Rise in 96% of US Metros
Written by: Ryan Smith
Home prices are still on the rise despite the COVID-19 pandemic, with the “overwhelming majority” of US metro areas posting price gains in the second quarter, according to a report by the National Association of Realtors.
Median single-family home prices rose year over year in 96% of markets measured by NAR in Q2, with 174 out of 181 metro areas posting price gains. That’s identical to the percentage of metro areas posting price gains in Q1, NAR said. The national median price for an existing single-family home was $291,300 in Q2. That was a 4.2% year over year. However, it marked a slower pace or appreciation than the pre-pandemic rate of 7.7% recorded in Q1.
“Home prices have held up well, largely due to the combination of very strong demand for housing and a limited supply of homes for sale,” said Lawrence Yun, chief economist at NAR. “Historically low inventory continue to reinforce and even increase prices in some areas.”
Fifteen metro areas posted double-digit price growth, including Huntsville, Ala. (13.5%), Memphis, Tenn. (13.4%), Boise, Idaho (12.6%), Spokane, Wash. (11.8%), Indianapolis (10.8%), and Phoenix, Ariz. (10.2%).
Yun said that while buyers will continue to be lured into the market by record-low mortgage rates, new homes are needed to satisfy that demand.
“Unless an increasing number of new homes are constructed, some buyers could miss out on the opportunity to purchase a home or have the opportunity delayed,” he said. “In the meantime, prices show no sign of decreasing.”
San Jose, Calif., continued to be the most expensive metro area in the country with a median price of $1.38 million, and posted a year-over-year price gain of 3.8% in the second quarter. San Francisco was in second place, although its median price held steady at $1.05 million, followed by Anaheim, Calif. ($859,000; 2.9% gain), urban Honolulu ($815,700; 3.8% gain), and San Diego ($670,000; 2.3% gain).
“This last quarter showed heavy buyer activity in less occupied areas when compared to highly populated cities such as San Francisco, New York and Washington, D.C., related in part to the longer shutdowns in these cities,” Yun said. “In the midst of the pandemic, some buyers are looking for housing in less crowded and more affordable metros.”
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1. HOA / Condo Association Loans (Most Common) These are commercial loans made directly to the association, not individual unit owners. Typical uses Roof replacement Structural repairs Painting, paving, elevators, plumbing Insurance-driven or reserve shortfalls Key features No lien on individual units Repaid through monthly assessments Terms: 5–20 years Fixed or adjustable rates Can be structured as: Fully amortizing loan Interest-only period upfront Line of credit for phased projects Underwriting looks at Number of units Owner-occupancy ratio Delinquency rate Budget, reserves, and assessment history No personal guarantees from owners 2. Special Assessment Financing (Owner-Friendly Option) Instead of asking owners to write large checks upfront: The association levies a special assessment Owners can finance their portion monthly Reduces resistance and default risk Keeps unit owners on predictable payments This is especially helpful in senior-heavy or fixed-income communities. 3. Reserve Replenishment Loans If reserves were drained for an emergency repair: Association borrows to rebuild reserves Keeps the condo compliant with lender and insurance requirements Helps protect unit values and marketability 4. Florida-Specific Reality (Important) Given your frequent focus on Florida condos, this resonates strongly right now: New structural integrity & reserve requirements Insurance-driven roof timelines Older associations facing multi-million-dollar projects Financing often prevents forced unit sales or assessment shock Many boards don’t realize financing is even an option until it’s explained clearly. 5. How to Position the Conversation (What to Say) You can frame it simply: “Rather than a large one-time special assessment, the association can finance the project and spread the cost over time—keeping dues manageable and protecting property values.” That line alone opens the door. 6. What Lenders Will Usually Ask For Current budget and balance sheet Reserve study (if available) Insurance certificates Delinquency report Project scope and contractor estimate Bottom Line Condo associations do not have to self-fund roofs or major repairs anymore. Financing: Preserves cash Reduces owner pushback Helps boards stay compliant Protects resale values Tune in and learn https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329
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