Residential Real Estate News
Home Prices Continue to Rise in 89 Percent of U.S. Metros in Late 2024
According to the National Association of Realtors' latest quarterly report, 89% of U.S. metro markets (201 out of 226) saw home price increases in the fourth quarter of 2024. During this period, the 30-year fixed mortgage rate ranged from 6.12% to 6.85%. Notably, 14% of tracked metro areas reported double-digit price gains, up from 7% in the previous quarter.
"Record-high home prices and the accompanying wealth gains are great for property owners," said NAR Chief Economist Lawrence Yun. "However, renters aiming to become homeowners face significant challenges."
Compared to the same period a year ago, the national median price for single-family existing homes rose 4.8% to $410,100, following a 3.2% increase in the previous quarter. Over five years, from 2019 to 2024, median home prices surged by 49.9%.
Among major U.S. regions, the South accounted for the largest share of home sales (45.1%) in the fourth quarter, with prices rising 2.1% year over year. Other regions saw price gains of 10.6% in the Northeast, 8.0% in the Midwest, and 4.0% in the West.
The top 10 metro areas with the highest year-over-year price increases saw gains of at least 14.9%, with six located in the Midwest. Leading markets included:
- Jackson, Miss. (28.7%)
- Peoria, Ill. (19.6%)Chattanooga, Tenn.-Ga. (18.2%)
- Elmira, N.Y. (17.6%)
- Fond du Lac, Wis. (17.6%)
- Cleveland-Elyria, Ohio (16.4%)
- Bismarck, N.D. (15.8%)
- Akron, Ohio (15.5%)
- Blacksburg-Christiansburg, Va. (15.0%)
- Canton-Massillon, Ohio (14.9%)
California remained home to eight of the top 10 most expensive housing markets, led by:
- San Jose-Sunnyvale-Santa Clara, Calif. ($1.92M; 9.7%)
- Anaheim-Santa Ana-Irvine, Calif. ($1.36M; 4.7%)
- San Francisco-Oakland-Hayward, Calif. ($1.32M; 5.2%)
- Urban Honolulu, Hawaii ($1.1M; 3.2%)
- San Diego-Carlsbad, Calif. ($985K; 5.7%)
Despite overall price growth, 24 out of 226 metro areas (11%) experienced home price declines, down from 13% in the previous quarter.
"Workers with the flexibility to relocate may find more affordable housing options given the wide regional price differences," Yun noted.
Housing affordability improved slightly in the fourth quarter. The monthly mortgage payment on a typical home with a 20% down payment fell 0.8% from the previous quarter to $2,124, a 1.7% drop from a year ago. Families spent 24.8% of their income on mortgage payments, down from 25.2% in the previous quarter and 26.5% a year earlier.
First-time buyers also saw minor relief. For a typical starter home priced at $348,600 with a 10% down payment, the monthly mortgage payment dropped to $2,083--a 0.9% decrease from the previous quarter. This reduced the share of income spent on mortgage payments from 38.1% to 37.4%.
To afford a 10% down payment mortgage, a family needed an income of $100,000 or more in 43.8% of metro areas, up slightly from 42.5% in the prior quarter. Meanwhile, only 2.2% of markets required an income under $50,000--unchanged from the previous quarter.
