Nearly 90% of Metro Areas Registered Home Price Gains in Second Quarter of 2024

A metro area’s median price surpassed $2 million (San Jose, Calif.) for the first time since NAR began tracking metro area single-family home prices in 1979

August 15, 2024 - WASHINGTON – Almost 90% of metro markets (199 out of 223, or 89%) recorded home price gains in the second quarter of 2024, as the 30-year fixed mortgage rate ranged from 6.82% to 7.22%, according to the National Association of REALTORS®' latest quarterly report. Thirteen percent of the 223 tracked metro areas experienced double-digit price gains over the same period, down from 30% in the first quarter. The median single-family existing-home price for the San Jose, California metro area was $2,008,000 – it's the first time since NAR began tracking metro area single-family home prices in 1979 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."

Compared to one year ago, the national median single-family existing-home price grew 4.9% to $422,100. In the previous quarter, the year-over-year national median price increased 5%.

Among the major U.S. regions, the South registered the largest share of single-family existing-home sales (45.5%) in the second quarter, with year-over-year price appreciation of 2.3%. Prices also bounced 9.8% in the Northeast, 5.5% in the Midwest and 5.4% in the West.[i]

The top 10 metro areas with the largest year-over-year median price increases, which can be influenced by the types of homes sold during the quarter, all posted gains of at least 14.1%. Five of the markets were in the Northeast. Overall, those markets were Racine, Wis. (19.8%); Glens Falls, N.Y. (19.8%); El Paso, Texas (19.2%); Morristown, Tenn. (16.7%); Manchester-Nashua, N.H. (16.2%); Anaheim-Santa Ana-Irvine, Calif. (15.0%); New York-Jersey City-White Plains, N.Y.-N.J. (14.8%); Springfield, Ill. (14.8%); Dutchess County-Putnam County, N.Y. (14.2%); and Trenton, N.J. (14.1%).

Seven of the top 10 most expensive markets in the U.S. were in California. Overall, those markets were San Jose-Sunnyvale-Santa Clara, Calif. ($2,008,000; 11.6%); San Francisco-Oakland-Hayward, Calif. ($1,449,000; 8.5%); Anaheim-Santa Ana-Irvine, Calif. ($1,437,500; 15%); Urban Honolulu, Hawaii ($1,101,500; 3.8%); San Diego-Carlsbad, Calif. ($1,050,000; 11.4%); Salinas, Calif. ($1,035,700; 13.1%); Oxnard-Thousand Oaks-Ventura, Calif. ($927,900; 2.5%); San Luis Obispo-Paso Robles, Calif. ($895,300; 0.5%); Boulder, Colo. ($888,300; 2%); and Naples-Immokalee-Marco Island, Fla. ($867,000; 2%).

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 said. "Conversely, some markets that experienced declines last year have roared back, such as San Francisco, Anaheim, and New York."

Housing affordability worsened in the second quarter as mortgage rates increased. 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.

First-time buyers encountered limited inventory and rising home prices in the second quarter, resulting in deteriorated affordability conditions compared to the prior quarter. For a typical starter home valued at $358,800 with a 10% down payment loan, the monthly mortgage payment jumped to $2,218, up 11.1% from the previous quarter ($1,997). That was an increase of $207, or 10.3%, from one year ago ($2,011). First-time buyers typically spent 40% of their family income on mortgage payments, up from 36.5% in the prior quarter.

A family needed a qualifying income of at least $100,000 to afford a 10% down payment mortgage in 48% of markets, up from 40.7% in the previous quarter. Yet, a family needed a qualifying income of less than $50,000 to afford a home in 2.7% of markets, down from 4.5% in the prior quarter.

"Housing affordability will improve in upcoming months," Yun said. "Mortgage rates have fallen measurably, and more supply is reaching the market. Therefore, the income required to buy a home will decrease."

About the National Association of REALTORS®

The National Association of REALTORS® is America's largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.

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Data tables for MSA home prices (single-family and condo) are posted at https://www.nar.realtor/research-and-statistics/housing-statistics/metropolitan-median-area-prices-and-affordability. If insufficient data is reported for an MSA in a particular quarter, it is listed as N/A. For areas not covered in the tables, please contact the local association of REALTORS®.

NOTE: NAR releases quarterly median single-family price data for approximately 220 Metropolitan Statistical Areas (MSAs). In some cases, the MSA prices may not coincide with data released by state and local REALTOR® associations. Any discrepancy may be due to differences in geographic coverage, product mix, and timing. In the event of discrepancies, REALTORS® are advised that for business purposes, local data from their association may be more relevant.

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¹ Areas are generally metropolitan statistical areas as defined by the U.S. Office of Management and Budget. NAR adheres to the OMB definitions, although in some areas an exact match is not possible from the available data. A list of counties included in MSA definitions is available at: https://www.census.gov/geographies/reference-files/time-series/demo/metro-micro/delineation-files.html(link is external).

Regional median home prices are from a separate sampling that includes rural areas and portions of some smaller metros that are not included in this report; the regional percentage changes do not necessarily parallel changes in the larger metro areas. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Quarter-to-quarter comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns.

Median price measurement reflects the types of homes that are selling during the quarter and can be skewed at times by changes in the sales mix. For example, changes in the level of distressed sales, which are heavily discounted, can vary notably in given markets and may affect percentage comparisons. Annual price measures generally smooth out any quarterly swings.

NAR began tracking of metropolitan area median single-family home prices in 1979; the metro area condo price series dates back to 1989.

The seasonally adjusted annual rate for a particular quarter represents what the total number of actual sales for a year would be if the relative sales pace for that quarter was maintained for four consecutive quarters. Total home sales include single-family, townhomes, condominiums and co-operative housing.