Nearly 90% of Metro Areas Registered Home Price Gains in Second Quarter of 2024
2024年8月13日 - 11:00PM
Key Highlights
- Single-family
existing-home sales prices rose in 89% of measured metro areas –
199 of 223 – in the second quarter, down from 93% in the previous
quarter. The national median single-family existing-home price rose
4.9% from a year ago to $422,100.
- Twenty-nine markets
(13%) experienced double-digit annual price appreciation (down from
30% in the prior quarter).
- The monthly mortgage
payment on a typical, existing single-family home with a 20% down
payment was $2,262 – up 10.3% from one year ago.
Almost 90% of metro markets (199 out of 223, or 89%) recorded
home price gains in the second quarter of 2024, as the 30-year
fixed mortgage rate ranged from 6.82% to 7.22%, according to the
National Association of Realtors®’ latest quarterly report.
Thirteen percent of the 223 tracked metro areas experienced
double-digit price gains over the same period, down from 30% in the
first quarter. The median single-family existing-home price for the
San Jose, California metro area was $2,008,000 – it’s the first
time since NAR began tracking metro area single-family home prices
in 1979 that a metro area’s median price exceeded $2 million.“The
record-high home prices in most metro markets bring good and bad
news,” said NAR Chief Economist Lawrence Yun. “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.”Compared to
one year ago, the national median single-family existing-home price
grew 4.9% to $422,100. In the previous quarter, the year-over-year
national median price increased 5%.Among the major U.S. regions,
the South registered the largest share of single-family
existing-home sales (45.5%) in the second quarter, with
year-over-year price appreciation of 2.3%. Prices also bounced 9.8%
in the Northeast, 5.5% in the Midwest and 5.4% in the West.[1]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 posted gains of at least 14.1%. Five of the
markets were in the Northeast. Overall, those markets were Racine,
Wis. (19.8%); Glens Falls, N.Y. (19.8%); El Paso, Texas (19.2%);
Morristown, Tenn. (16.7%); Manchester-Nashua, N.H. (16.2%);
Anaheim-Santa Ana-Irvine, Calif. (15.0%); New York-Jersey
City-White Plains, N.Y.-N.J. (14.8%); Springfield, Ill. (14.8%);
Dutchess County-Putnam County, N.Y. (14.2%); and Trenton, N.J.
(14.1%).Seven of the top 10 most expensive markets in the U.S. were
in California. Overall, those markets were San Jose-Sunnyvale-Santa
Clara, Calif. ($2,008,000; 11.6%); San Francisco-Oakland-Hayward,
Calif. ($1,449,000; 8.5%); Anaheim-Santa Ana-Irvine, Calif.
($1,437,500; 15%); Urban Honolulu, Hawaii ($1,101,500; 3.8%); San
Diego-Carlsbad, Calif. ($1,050,000; 11.4%); Salinas, Calif.
($1,035,700; 13.1%); Oxnard-Thousand Oaks-Ventura, Calif.
($927,900; 2.5%); San Luis Obispo-Paso Robles, Calif. ($895,300;
0.5%); Boulder, Colo. ($888,300; 2%); and Naples-Immokalee-Marco
Island, Fla. ($867,000; 2%).Nearly 10% of markets (22 of 223)
experienced home price declines in the second quarter, up from 7%
in the first quarter.“Previously fast-gaining markets took a
breather in the past quarter, including Nashville, Durham, Austin,
and several Florida metro areas,” Yun said. “Conversely, some
markets that experienced declines last year have roared back, such
as San Francisco, Anaheim, and New York.”Housing affordability
worsened in the second quarter as mortgage rates increased. The
monthly mortgage payment on a typical existing single-family home
with a 20% down payment was $2,262, up 11.1% from the first quarter
($2,036) and 10.3% – or $212 – from one year ago. Families
typically spent 26.5% of their income on mortgage payments, up from
24.2% in the previous quarter and 25.3% one year ago.First-time
buyers encountered limited inventory and rising home prices in the
second quarter, resulting in deteriorated affordability conditions
compared to the prior quarter. For a typical starter home valued at
$358,800 with a 10% down payment loan, the monthly mortgage payment
jumped to $2,218, up 11.1% from the previous quarter ($1,997). That
was an increase of $207, or 10.3%, from one year ago ($2,011).
First-time buyers typically spent 40% of their family income on
mortgage payments, up from 36.5% in the prior quarter.A family
needed a qualifying income of at least $100,000 to afford a 10%
down payment mortgage in 48% of markets, up from 40.7% in the
previous quarter. Yet, a family needed a qualifying income of less
than $50,000 to afford a home in 2.7% of markets, down from 4.5% in
the prior quarter.“Housing affordability will improve in upcoming
months,” Yun said. “Mortgage rates have fallen measurably, and more
supply is reaching the market. Therefore, the income required to
buy a home will decrease.”About the National Association of
Realtors®The National Association of Realtors® is America’s
largest trade association, representing 1.5 million members
involved in all aspects of the residential and commercial real
estate industries. The term Realtor® is a registered collective
membership mark that identifies a real estate professional who is a
member of the National Association of Realtors® and subscribes to
its strict Code of Ethics.
# # #Information about NAR is available at
nar.realtor. This and other news releases are posted in
the newsroom at nar.realtor/newsroom.
Statistical data in this release, as well as other tables and
surveys, are posted in the “Research and Statistics” tab.
Data tables for MSA home prices (single-family and condo) are
posted at
https://www.nar.realtor/research-and-statistics/housing-statistics/metropolitan-median-area-prices-and-affordability.
If insufficient data is reported for an MSA in a particular
quarter, it is listed as N/A. For areas not covered in the tables,
please contact the local association of Realtors®.
NOTE: NAR releases quarterly median single-family price data for
approximately 220 Metropolitan Statistical Areas (MSAs). In some
cases, the MSA prices may not coincide with data released by state
and local Realtor® associations. Any discrepancy may be due to
differences in geographic coverage, product mix, and timing. In the
event of discrepancies, Realtors® are advised that for business
purposes, local data from their association may be more
relevant.
[1] Areas are generally metropolitan statistical areas as
defined by the U.S. Office of Management and Budget. NAR adheres to
the OMB definitions, although in some areas an exact match is not
possible from the available data. A list of counties included in
MSA definitions is available at:
https://www.census.gov/geographies/reference-files/time-series/demo/metro-micro/delineation-files.html.Regional
median home prices are from a separate sampling that includes rural
areas and portions of some smaller metros that are not included in
this report; the regional percentage changes do not necessarily
parallel changes in the larger metro areas. The only valid
comparisons for median prices are with the same period a year
earlier due to seasonality in buying patterns. Quarter-to-quarter
comparisons do not compensate for seasonal changes, especially for
the timing of family buying patterns.Median price measurement
reflects the types of homes that are selling during the quarter and
can be skewed at times by changes in the sales mix. For example,
changes in the level of distressed sales, which are heavily
discounted, can vary notably in given markets and may affect
percentage comparisons. Annual price measures generally smooth out
any quarterly swings.NAR began tracking of metropolitan area median
single-family home prices in 1979; the metro area condo price
series dates back to 1989.The seasonally adjusted annual rate for a
particular quarter represents what the total number of actual sales
for a year would be if the relative sales pace for that quarter was
maintained for four consecutive quarters. Total home sales include
single-family, townhomes, condominiums and co-operative
housing.
Troy Green
National Association of Realtors®
tgreen@nar.realtor