The National Association of REALTORS®’ (NAR) latest quarterly report shows that single-family existing-home sales prices climbed in 87% of measured metro areas (196 out of 226) in the third quarter of 2024 as mortgage rates continued to trend lower, with the 30-year fixed mortgage rate ranging from 6.08% to 6.95%. This is down from 89% in the previous quarter. According to the report, the national median single-family existing-home price clocked in at $418,700—growing 3.1% from one year ago.
With nearly 90% of metro areas posting home price increases in the third quarter, NAR’s report revealed that 15 markets (7%) experienced double-digit annual price appreciation—a 13% decline from the previous quarter.
“Home prices remain on solid ground as reflected by the vast number of markets experiencing gains,” said NAR Chief Economist Lawrence Yun. “A typical homeowner accumulated $147,000 in housing wealth in the last five years. Even with the rapid price appreciation over the last few years, the likelihood of a market crash is minimal. Distressed property sales and the number of people defaulting on mortgage payments are both at historic lows.”
While housing affordability improved slightly in the third quarter, according to NAR, the monthly mortgage payment on a typical existing single-family home with a 20% down payment was $2,137. This is down 5.5% ($2,262) and 2.4% ($52) from one year ago. Drilling down further, NAR’s quarterly report found that families typically spent 25.2% of their income on mortgage payments, which is down from 26.9% in the previous quarter and 27.1% from one year ago.
“Housing affordability has been a challenge, but the worst appears to be over,” added Yun. “Rising wages are outpacing home price increases. Despite some short-term swings, mortgage rates are set to stabilize below last year’s levels. More inventory is reaching the market and providing additional options for consumers.”
Zeroing in on first-time buyers specifically, NAR reported marginally better affordability conditions compared to the previous quarter, although the association recently reported in its 2024 Profile of Home Buyers and Sellers that the share of first-time buyers decreased to a historic low of 24%.
Delving further into the data, NAR’s latest quarterly report showed that for a typical starter home valued at $355,900 with a 10% down payment, the monthly mortgage payment declined to $2,097. This is down 5.5% or $2,218 from the previous quarter—a decrease of $49, or 2.3%, from one year ago ($2,146).
Looking at the data on a regional level, according to the report, the South registered the largest share of single-family existing-home sales (45.1%) in Q3, with a year-over-year price appreciation of 0.8%. Prices also increased in the Northeast (7.8%), the Midwest (4.3%) and the West (1.8%).
The top 10 metro areas with the largest year-over-year median price increases experienced gains of at least 10.6%. These areas include: Racine, Wisconsin (13.7%); Youngstown-Warren-Boardman, Ohio-Pennsylvania (13.1%); Syracuse, New York (13%); Peoria, Illinois (12.4%); Springfield, Illinois (12.3%); Burlington-South Burlington, Vermont. (11.7%); Shreveport-Bossier City, Louisiana (11.5%); Rockford, Illinois (11.1%); Decatur, Illinois (10.9%); and Norwich-New London, Connecticut (10.6%).
To read the full report, click here.
