NAR: Q1 Home Prices Up in 83% of Metro Markets

Single-family existing home sales prices were up in 83% of metro markets (189 out of 228) during the first quarter, according to data from the National Association of Realtors (NAR), which also found 11% of the tracked metro areas recorded double-digit price gains, down from 14% in the previous quarter.

The national median single-family existing-home price grew 3.4% year-over-year to $402,300. In the prior quarter, the year-over-year national median price increased 4.8%.

On a regional basis, the South registered the largest share of existing home sales (44.9%) in the first quarter, with year-over-year price appreciation of 1.3%.  However, six of the top 10 large markets with the biggest year-over-year median price increases were in New York and Ohio – and, not surprisingly, eight of the top 10 most expensive markets were in California.

“Most metro markets continue to set new record highs for home prices,” said NAR Chief Economist Lawrence Yun. “In the first quarter, the Northeast performed best in both sales and price gains by percentage. Despite the stronger job additions, the South lagged with declining sales and virtually no price appreciation.”

“A few areas where home prices declined a year or two ago are now rebounding, including Boise, Las Vegas, Salt Lake City, San Francisco and Seattle,” Yun added. “Similarly, some markets currently experiencing price declines – but with solid job growth – could see prices recover in the near future, such as Austin, San Antonio, Huntsville, Myrtle Beach, Raleigh and many Florida markets.”

NAR also reported that the monthly mortgage payment on a typical existing single-family home with a 20% down payment was $2,120, down by a mere $2 from the previous quarter ($2,122) but up 4.1% – or $84 – from one year ago. Families typically spent 24.4% of their income on mortgage payments, down from 24.8% in the prior quarter and 24.5% one year ago.

For a typical starter home valued at $342,000 with a 10% down payment loan, the monthly mortgage payment declined to $2,079, down just $2 from the prior quarter ($2,081). That was an increase of $82, or 4.1%, from one year ago ($1,997). First-time buyers typically spent 36.8% of their family income on mortgage payments, down from 37.4% in the previous quarter.