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Single-Family Home Prices Rose in 99% of Metro Areas in Q1
The National Association of REALTORS® reported that the year started off with strong home-price growth during the first quarter of 2021, where prices continued to rise, leading to 89% of markets showing double-digit home price appreciation. National median prices rose 16.2% year-over-year to $319,200.
Monthly mortgage payments on a single-family home during the first quarter increased to $1,067, compared with $995 from a year ago. Qualifying median family income rose to $51,216 compared to the first quarter of 2020 when it was $47,760. The effective 30-year fixed mortgage rate decreased to 2.93% in the first quarter of 2021 compared with 3.57% one year prior.
Knowing the mortgage rates and the qualifying incomes for a median-priced home with different down payment scenarios will help potential homeowners figure out what metro areas are affordable for them.
Here is a look at the metro areas with the strongest price growth in the first quarter, as well as a look at the yearly change in median existing single-family home prices among the five highest- and lowest-growth metro areas of the first quarter.
These are the five single-family metro areas with the highest home price appreciation:
These are the five single-family metro areas with the lowest home price appreciation:
These were the most expensive metro areas during the first quarter of 2021:
These were the least expensive metro areas during the first quarter of 2021:
Qualifying Income Based on Sales Price of Existing Single-Family Homes for Metropolitan Areas by Region For the U.S., to purchase an existing single-family home at the 5% down payment threshold, the qualifying income amount for the first quarter of 2021 was $60,819. At the 10% down payment mark, the qualifying income was $57,618, and with a 20% down payment, the income required to qualify for a mortgage was $51,216. The West led all regions with the highest qualifying income needed, while the Midwest had the lowest income required at all down-payment levels.