Home prices gained in second quarter of 2024 in nearly 90 percent of metro areas

The National Association of Realtors® reports a metropolitian area’s median price surpassed $2 million for the first time since NAR began tracking metro area single-family home prices in 1979

Key highlights
• Single-family existing-home sales prices rose in 89 percent of measured metro areas – 199 of 223 – in the second quarter, down from 93 percent in the previous quarter. The national median single-family existing-home price rose 4.9 percent from a year ago to $422,100.
• Twenty-nine markets (13 percent) experienced double-digit annual price appreciation (down from 30 percent in the prior quarter).
• The monthly mortgage payment on a typical, existing single-family home with a 20 percent down payment was $2,262 – up 10.3 percent from one year ago.

Almost 90 percent of metro markets (199 out of 223, or 89 percent) recorded home price gains in the second quarter of 2024, as the 30-year fixed mortgage rate ranged from 6.82 percent to 7.22 percent, 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 percent 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 percent to $422,100. In the previous quarter, the year-over-year national median price increased 5 percent.

Among the major U.S. regions, the South registered the largest share of single-family existing-home sales (45.5 percent) in the second quarter, with year-over-year price appreciation of 2.3 percent. Prices also bounced 9.8 percent in the Northeast, 5.5 percent in the Midwest and 5.4 percent in the West.

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 percent.

Seven of the top 10 most expensive markets in the U.S. were in California. Overall, those markets were San Jose-Sunnyvale-Santa Clara, California ($2,008,000; 11.6 percent); San Francisco-Oakland-Hayward, California ($1,449,000; 8.5 percent); Anaheim-Santa Ana-Irvine, California ($1,437,500; 15 percent); Urban Honolulu, Hawaii ($1,101,500; 3.8 percent); San Diego-Carlsbad, California ($1,050,000; 11.4 percent); Salinas, California ($1,035,700; 13.1 percent); Oxnard-Thousand Oaks-Ventura, California ($927,900; 2.5 percent); San Luis Obispo-Paso Robles, California ($895,300; 0.5 percent); Boulder, Colorado ($888,300; 2 percent); and Naples-Immokalee-Marco Island, Florida ($867,000; 2 percent).

Nearly 10 percent of markets (22 of 223) experienced home price declines in the second quarter, up from 7 percent 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 percent down payment was $2,262, up 11.1 percent from the first quarter ($2,036) and 10.3 percent – or $212 – from one year ago. Families typically spent 26.5 percent of their income on mortgage payments, up from 24.2 percent in the previous quarter and 25.3 percent 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 percent down payment loan, the monthly mortgage payment jumped to $2,218, up 11.1 percent from the previous quarter ($1,997). That was an increase of $207, or 10.3 percent, from one year ago ($2,011). First-time buyers typically spent 40 percent of their family income on mortgage payments, up from 36.5 percent in the prior quarter.

A family needed a qualifying income of at least $100,000 to afford a 10 percent down payment mortgage in 48 percent of markets, up from 40.7 percent in the previous quarter. Yet, a family needed a qualifying income of less than $50,000 to afford a home in 2.7 percent of markets, down from 4.5 percent 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.