The National Association of REALTORS®’ (NAR) latest quarterly report shows that in Q2 2024, single-family existing-home sales prices rose in 89% of metro areas measured—a whopping 199 out of 223 metros measured by NAR—down from 93% in Q1. According to the report, the national median single-family existing-home price also rose, spiking 4.9% from last year, reaching $422,100.
According to NAR, a significant number of markets—29 total, or 13%—experienced price appreciation in the double-digit margin, which fell from 30% in Q1 of this year.
“The record-high home prices in most metro markets bring good and bad news,” said NAR Chief Economist Lawrence Yun in a statement. “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.”
As housing affordability worsened in Q2, mortgage rates continued to increase. According to NAR’s report, “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 on average spend 26.5% of their income on mortgage payments, which is up from 24.2% in Q1 and 25.3% from exactly one year ago, according to NAR.
Regarding first-time buyers, they faced unfavorable affordability conditions in Q2 compared to the first quarter of this year due to scarce inventory and spiking home prices.
NAR provided the following example in its report: “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).”
Delving further into the data, NAR reports that first-time buyers spent a large portion of their salary earnings on mortgage payments—typically spending 40% of their family income, up from 36.5% in the first quarter of 2024.
“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.”
The five metros with the largest year-over-year median price gains were Racine, Wisconsin (19.8%); Glens Falls, New York (19.8%); El Paso, Texas (19.2%); Morristown, Tennessee (16.7%) and Manchester-Nashua, New Hampshire (16.2%).
“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.”
To read the full report, click here.
