As the real estate industry has settled into a new year and market, the latest report from the National Association of REALTORS® (NAR) found that 2024 ended with home prices having jumped across the U.S.
The quarterly report, surveying median prices in 226 metro areas to gauge affordability, found that home prices increased in 201 of those metro areas (meaning 89% of those surveyed) during the fourth quarter of 2024. Adding to that, 32 (14%) of the metro areas experienced double-digit price gains.
“Record-high home prices and the accompanying housing wealth gains are definitely good news for property owners,” said NAR Chief Economist Lawrence Yun in a statement. “However, renters who are looking to transition into homeownership face significant hurdles…while recognizing many workers may not have the option to relocate, those who can or are willing to move may find more affordable conditions, especially given the wide variance in home prices nationwide.”
Nationally, the median single-family existing-home price rose annually by 4.8% to $410,100. This caps off a 49.9% increase in median home prices from 2019 to 2024.
The report notes relatively large swings in the 30-year mortgage rate during the fourth quarter, ranging from 6.12% to 6.85%. However, the report also finds that mortgage expenses were slightly down in Q4 2024.
The typical monthly mortgage payment for a home with a 20% down payment dropped to $2,124, down 0.8% from the third quarter and 1.7% from 2023. Homeowners typically spent 24.8% of their income on mortgage payments, down from 25.2% in Q3 2024 and from 26.5% in 2023. First-time buyers typically spent 37.4% of family income on mortgage payments, compared to 38.1% in Q3 2024.
Regional breakdown
In the four major U.S. census regions, median prices experienced the greatest annual increase in the Northeast (10.6%), followed by the Midwest (8%), the West (4%) and finally the South (2.1%).
The 10 U.S. markets that experienced the highest price gains were primarily found in the Midwest or the South:
- Jackson, Mississippi (28.7%)
- Peoria, Illinois (19.6%)
- Chattanooga, Tennessee (18.2%)
- Elmira, New York (17.6%)
- Fond du Lac, Wisconsin (17.6%)
- Cleveland-Elyria, Ohio (16.4%)
- Bismarck, North Dakota (15.8%)
- Akron, Ohio (15.5%)
- Blacksburg-Christiansburg, Virginia (15%)
- Canton-Massillon, Ohio (14.9%)
The most expensive U.S. markets in Q4 2024 were primarily located in California, with two exceptions:.
- San Jose-Sunnyvale-Santa Clara ($1,920,000)
- Anaheim-Santa Ana-Irvine ($1,360,000)
- San Francisco-Oakland-Hayward ($1,315,600)
- Urban Honolulu, Hawaii ($1,103,100)
- San Diego-Carlsbad ($985,000)
- Salinas ($943,900)
- Los Angeles-Long Beach-Glendale ($939,700)
- San Luis Obispo-Paso Robles ($927,200)
- Oxnard-Thousand Oaks-Ventura ($920,000)
- Boulder, Colorado ($840,700)
For the full report, click here.
