Housing market saw nearly 90% of metro areas experiencing home price increases
The US housing market saw nearly 90% of metro areas experiencing home price gains in the second quarter of 2024, according to the latest report from the National Association of Realtors® (NAR).
Despite a slight decrease from the 93% recorded in the previous quarter, the continued price growth underscores a strong, albeit challenging, real estate market.
The national median single-family existing-home price rose 4.9% year-over-year to $422,100. The San Jose, California metro area led the charge, with its median price surpassing $2 million for the first time since NAR began tracking these figures in 1979. This milestone highlights the escalating home prices in high-demand areas.
NAR chief economist Lawrence Yun commented on the implications of these record prices: “It’s terrific news for homeowners who are moving ahead in wealth gains. However, it’s difficult for those wanting to buy a home as the required income to qualify has roughly doubled from just a few years ago.”
Price appreciation in cities
In the second quarter, 29 metro areas, or 13%, saw double-digit annual price appreciation, down from 30% in the prior quarter. The South led the nation with the largest share of single-family home sales at 45.5%, experiencing a 2.3% increase in year-over-year prices. Meanwhile, the Northeast saw a substantial 9.8% price jump, followed by the Midwest at 5.5% and the West at 5.4%.
The report identified the top 10 metro areas with the highest median price increases, all of which posted gains of at least 14.1%. Leading these were Racine, WI, and Glens Falls, NY, both at 19.8%. Notably, seven of the top 10 most expensive markets were in California, including San Jose-Sunnyvale-Santa Clara, with a staggering median price of $2,008,000.
The report also highlighted a trend of declining prices in nearly 10% of markets, up from 7% in the previous quarter. Markets such as Nashville, Durham, and Austin have seen slowdowns, while areas like San Francisco and New York have shown robust recovery.
Affordability remains a major concern, with the typical monthly mortgage payment on an existing single-family home reaching $2,262. This marks a 10.3% increase from a year ago. First-time buyers have been particularly affected, with the cost of a starter home surging and requiring a typical family to allocate 40% of their income towards mortgage payments.
Yun remains optimistic about future improvements in housing affordability. “Mortgage rates have fallen measurably, and more supply is reaching the market. Therefore, the income required to buy a home will decrease,” he noted.
Do you have something to say about these recent findings? Let us know in the comments below.
