More Than 90% of Metro Areas Recorded Home-Price Increases in Q1 2024By RISMedia Staff
The National Association of REALTORS® (NAR) recently released data showing that nearly every metro area it tracks—93%—posted year-over-year price increases in the first quarter of 2024.
The top 10 metro areas with the largest year-over-year median price increases, which can be influenced by the types of homes sold during the quarter, all registered gains of at least 18.2%. Six of the markets were in Illinois and Wisconsin. Overall, those markets were:
According to NAR, more than 90% of metro markets (205 out of 221, or 93%) posted home price gains in the first quarter of 2024, as the 30-year fixed mortgage rate ranged from 6.60% to 6.94%. Thirty percent of the 221 tracked metro areas experienced double-digit price gains over the same period, up from 15% in the fourth quarter of 2023, NAR said. Compared to one year ago, the national median single-family existing-home price climbed 5% to $389,400. In the prior quarter, the year-over-year national median price increased 3.4%. Among the major U.S. regions, the South registered the largest share of single-family existing-home sales (46%) in the first quarter, with year-over-year price appreciation of 3.3%. Prices also swelled 11% in the Northeast, 7.4% in the Midwest and 7.3% in the West. Most expensive markets Eight of the top 10 most expensive markets in the U.S. were in California. Overall, those markets were:
Seven percent of markets (15 of 221) experienced home price declines in the first quarter, down from 14% in the fourth quarter of 2023. Housing affordability improved in the first quarter as mortgage rates declined. The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $2,037, down 5.7% from the fourth quarter of 2023 ($2,161) but up 9.3%—or $173—from one year ago. Families typically spent 24.2% of their income on mortgage payments, down from 26.1% in the prior quarter but up from 23.3% one year ago. First-time homebuyers Once again, first-time buyers faced limited inventory and elevated home prices in the first quarter, though affordability conditions bettered from the previous quarter. For a typical starter home valued at $331,000 with a 10% down payment loan, the monthly mortgage payment fell slightly to $1,998, down 5.7% from the previous quarter ($2,118). However, that was an increase of $168, or 9.2%, from one year ago ($1,830). First-time buyers typically spent 36.5% of their family income on mortgage payments, down from 39.3% in the prior quarter. A family needed a qualifying income of at least $100,000 to afford a 10% down payment mortgage in 40.7% of markets, down from 47.1% in the previous quarter. Yet, a family needed a qualifying income of less than $50,000 to afford a home in 4.5% of markets, up from 2.3% in the prior quarter. For more information, visit nar.realtor. |
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