Home
prices
trended
up
in
almost
all
U.S. metro
areas
during
the
first
quarter
of
2024.
Out
of
221
metro
markets
analyzed,
205
(93%)
posted
yearly
home
price
gains
in
Q1
2024,
while
30%
experienced
double-digit
price
gains
during the
same
period
—
up
from
15%
in
the
fourth
quarter
of
2023
—
according
to
the


National
Association
of
Realtors’
(NAR)
newest
quarterly

report. 

“Astonishingly,
greater
than
90%
of
the
country’s
metro
areas
experienced
home
price
growth
despite
facing
the
highest

mortgage
rates
in
two
decades,”
NAR
chief
economist
Lawrence
Yun
said
in
a
statement.
“In
the
current
market,
rising
prices
are
the
direct
result
of
insufficient
housing
supply
not
meeting
the
full
demand.”

The
national
median

single-family
existing-home
price
sat
at
$389,400
during
the
first
quarter
of
2024,
up
5%
compared
to
one
year
ago.
By
contrast,
the
U.S.
median
price
increased
3.4%
year
over
year
in
Q4
2023.

The
South
led
all
regions
with
the
largest
share
of
single-family
existing-home
sales,
at
46%
in
the
first
quarter,
with
year-over-year
price
appreciation
of
3.3%.
Prices
rose
by
11%
in
the
Northeast,
by
7.4%
in
the
Midwest
and
by
7.3%
in
the
West. 

The
metro
areas
with
the
highest
yearly
median
price
increases
during
the
first
quarter
were
Fond
du
Lac,
Wisconsin
(23.7%);
Kankakee,
Illinois
(22%);
and
Rockford,
Illinois
(20.1%).
Six
of
the
10
markets
with
the
highest
price
appreciation
were
in
either
Illinois
or
Wisconsin.

Meanwhile,
eight
of
the
10
most
expensive
markets
in
the
U.S.
were
in
California,
with
Honolulu
and
Naples,
Florida,
also
joining
the
list. 

“The
expensive
markets
in
the
West,
where
home
prices
declined
last
year,
are
roaring
back,”
Yun
said.
“Price
dips
in
that
region
were
viewed
as
second-chance
opportunities
by
many
buyers.”

Only
7%
of
markets
(15
of
221)
experienced
home
price
declines
in
the
first
quarter,
down
from
14%
in
Q4
2023.

Although
borrowing
costs
rose
during
the
first
three
months
of
the
year,
according
to

HousingWire’s
Mortgage
Rates
Center,
housing
affordability
improved,
NAR
reported. 

The
monthly
mortgage
payment
on
a
typical
existing
single-family
home
with
a
20%
down
payment
was
$2,037,
down
from
$2,161
in
Q4 2023.
But
this
figure
was
still
up
by
$173
(9.3%)
from
one
year
ago. 

Households typically
allocated
24.2%
of
their
income
to
mortgage
payments,
down
from
26.1%
in
the
prior
quarter
but
up
from
23.3%
one
year
ago.

For
first-time
buyers,
the
monthly
mortgage
payment
on
the
typical
starter
home
(valued
at
$331,000
with
a
10%
down
payment
loan)
fell
to
$1,998,
down
5.7%
from
the
previous
quarter
($2,118).
But that
was
an
increase
of
$168
from
one
year
ago
when
the
monthly
mortgage
payment
for
a
typical
starter
home
sat
at
$1,830. 

On
average,
first-time
buyers
spent
36.5%
of
their
household
income
on
mortgage
payments,
down
from
39.3%
in
the
prior
quarter.

In
40.7%
of
the
markets
studied,
a
family
needed
a
qualifying
income
of
at
least
$100,000
to
afford
a
10%
down
payment
mortgage,
down
from
47.1%
in
the
previous
quarter.
Conversely,
a
family
needed
a
qualifying
income
of
less
than
$50,000
to
afford
a
home
in
4.5%
of
markets,
up
from
2.3%
in
the
prior
quarter.

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