National Association of Realtors August 21, 2023
Buyer
The National Association of REALTORS® reported that home prices continued to rise in the second quarter of 2023. National median prices fell 2.4% year-over-year to $402,600. Median home prices rose by 8.5% compared to the previous quarter. There was a total of 128 metro areas that had year-over-year price increases in the second quarter of 2023.
Monthly mortgage payments on a single-family home this quarter increased to $2,051 compared to $1,837 from a year ago. Qualifying median family income rose to $98,429 compared to the first quarter of 2023, which was $89,486 but was $88,200 a year ago. The effective 30-year fixed mortgage rate increased to 6.57% in the second quarter of 2023 compared to 5.32% one year ago. Median family incomes rose to $91,270 in the second quarter of 2023 compared to $87,181 a year ago.
Knowing the mortgage rates and the qualifying incomes for down payments will help potential homeowners figure out which metro areas are affordable for them.
Here is a look at the metro areas with the strongest price growth in the second quarter of 2023, as well as a look at the yearly change in median existing single-family home prices among the top five highest and lowest growth metro areas of the second quarter of 2023.
These are the top five single-family metro areas with the highest home price appreciation:
These are the bottom five single-family metro areas with the slowest home price appreciation:
These are the most expensive metro areas for the second quarter of 2023:
These are the least expensive metro areas for the second quarter of 2023:
For the U.S., at the 5% down-payment threshold, the qualifying income amount for the second quarter of 2023 was $116,885. At the 10% down-payment mark, the qualifying income was $110,733, and with a 20% down-payment, the income required to qualify for a mortgage was $98,429. The West led all regions with the highest qualifying income, while the Midwest had the lowest income for 5%, 10%, and 20% down payments on single-family homes.
Stay up to date on the latest real estate trends.
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