WRE News August 15, 2024
Buyer
New data from the National Association of Realtors (NAR) determined that 199 out of 223 metro markets, or 89%, recorded home price gains in the second quarter as the 30-year fixed mortgage rate ranged from 6.82% to 7.22%. NAR added that 13% of the 223 tracked metro areas experienced double-digit price gains over the same period, down from 30% in the first quarter.
Compared to one year ago, the national median single-family existing home price grew 4.9% to $422,100. Seven of the top 10 most expensive markets in the second quarter were in California, while five of the top 10 metro areas with the largest year-over-year median price increases were in the Northeast.
Furthermore, NAR highlighted that 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 typically spent 26.5% of their income on mortgage payments, up from 24.2% in the previous quarter and 25.3% one year ago.
NAR also noted a new home price peak in the second quarter as the median single-family existing home price for the San Jose metro area was $2,008,000 – this marked the first time ever that a metro area’s median price exceeded $2 million.
“The record-high home prices in most metro markets bring good and bad news,” said NAR Chief Economist Lawrence Yun. “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.”
On the flip side, nearly 10% of markets (22 of 223) experienced home price declines in the second quarter, up from 7% in the first quarter.
“Previously fast-gaining markets took a breather in the past quarter, including Nashville, Durham, Austin, and several Florida metro areas,” Yun added. “Conversely, some markets that experienced declines last year have roared back, such as San Francisco, Anaheim, and New York. Housing affordability will improve in upcoming months. Mortgage rates have fallen measurably, and more supply is reaching the market. Therefore, the income required to buy a home will decrease.”
Stay up to date on the latest real estate trends.
Buyer
July 15, 2025
Buying your first home is a big milestone – and the right support is going to make it a whole lot easier.
Buyer
July 14, 2025
For the Miami bungalow of Chelsea Hirschhorn, husband-and-wife design team, Monica Santayana and Ronald Alvarez of MONIOMI Design were tasked with capturing a subtle, … Read more
Seller
July 13, 2025
When it comes to selling your home, there are a lot of factors to consider before placing it on the market, including what design decisions could potentially boost you… Read more
Buyer
July 12, 2025
After five weeks in decline, mortgage rates were on the rise in the latest Primary Mortgage Market Survey published by Freddie Mac (OTCQB: FMCC).
Lifestyle
July 12, 2025
Wendy’s family rarely misses a daily walk to the beach to watch the sunset with their two precious dogs.
Lifestyle
July 12, 2025
Every afternoon, when I drive up the road to pick up my son from day camp, I pass the nearby sleepaway camp on my way.
We Guide Homeowners through the complicated process of selling their home using our 4 Phase Selling Process and 3 Prong Marketing Strategy that alleviates their stress and moves them effortlessly to their next destination. Schedule a 15 Minute Complimentary Strategy Session Today