![Florida property markets are at the top of national year-on-year price growth ratings](https://storage3.florida.realestate/static/files/0jv7h/800-panama-city-beach-2022-11-16-22-06-16-utc_480x320.jpg)
The value of American properties continued to grow in the third quarter of the current year, although mortgage loan rates are approaching 7% and the number of closed deals is dropping. According to the National Association of Realtors, prices in 46% out of 185 surveyed districts experienced a double-digit growth. In the second quarter, this share equaled 80%.
Starter homes are priced at approximately $338,700. The monthly payment on a mortgage with a 10% down payment increased to $1,808 compared to the second quarter of 2022, when mortgage installments were $1,807. This is a slight growth but this value has surged by 49% compared to last year ($1,210).
Lawrence Yun, Chief Economist at the National Association of Realtors, explained that such a trend would continue until the growth of mortgage rates stops. An average family now needs to earn at least $88,300 to afford a home, which is almost $40,000 more than before the pandemic in 2019.
Data shows that seven of Florida’s statistical areas are in the top ten by year-on-year price growth among all areas with a registered growth of over 18%. These include:
- Ocala (18.8%)
- Tampa – Saint Petersburg – Clearwater (18.8%)
- Port St. Lucie (19.4%)
- Daytona Beach – Ormond Beach (19.6%)
- Panama City (20.5%)
- Lakeland – Winter Haven (21.2%)
- North Port (23.8%)
Last year, the monthly mortgage payment for a single-family house was $1,226 on average, which is 50% less than in the third quarter of the current year ($1,840). This is a little higher compared to the second quarter of the current year ($1,837).
During this quarter, an average of 25% of household income went towards mortgage payments – 25.3% less than a quarter earlier, but 17.2% more than in 2021, as the data from the National Association of Realtors shows.
Returning to a normal spread between the national lending interest rates and home loan rates will reduce the 30-year mortgage rates to 6%, Dr. Yun believes. The regular spread between the return on 10-year treasury bonds and 30-year mortgage rates ranges from 150 to 200 basis points, unlike the current spread of 300 basis points.