Q1 2024 Home Price Surge: Analyzing Metro Market Trends 

Lisa Mailhot  |  May 10, 2024

Buyers

Q1 2024 Home Price Surge: Analyzing Metro Market Trends 

 

 The Market Roars Ahead

In the first quarter of 2024, the U.S. housing market showcased remarkable resilience. According to the latest report from the National Association of REALTORS® (NAR), more than 90% of metro markets saw home price increases, despite the highest mortgage rates in two decades. 

Significant Gains Across Regions

Home prices soared in various regions, with the Midwest and expensive West Coast cities leading the charge. Notably, Illinois and Wisconsin dominated the top 10 markets with the largest year-over-year median price increases, showcasing significant growth:

  • Fond du Lac, Wis.: +23.7%
  • Kankakee, Ill.: +22.0%
  • Rockford, Ill.: +20.1%
  • Champaign-Urbana, Ill.: +20.0%
  • Racine, Wis.: +19.0%

West Coast Rebound

California's high-cost markets, which faced price declines last year, are bouncing back robustly. Leading the list with substantial year-over-year gains are:

  • San Jose-Sunnyvale-Santa Clara, Calif.: $1,840,000 (+13.7%)
  • Anaheim-Santa Ana-Irvine, Calif.: $1,365,000 (+14.2%)
  • San Francisco-Oakland-Hayward, Calif.: $1,300,000 (+14%)

Mortgage Rates and Affordability

During this period, the 30-year fixed mortgage rate fluctuated between 6.60% and 6.94%. Despite this, housing affordability saw some improvement due to declining mortgage payments, with the average family spending 24.2% of their income on mortgage payments, down from 26.1% in the previous quarter.

 

Challenges for First-Time Buyers

First-time homebuyers continued to navigate a challenging market with limited inventory and high prices. However, affordability conditions improved slightly from the previous quarter, making it a crucial time for strategic purchasing decisions.

Regional Highlights

The South led in single-family home sales, capturing 46% of the market, with a year-over-year price increase of 3.3%. Meanwhile, the Northeast experienced the highest price appreciation at 11%, followed by the Midwest at 7.4% and the West at 7.3%.

Bottomline

The Q1 2024 report highlights a dynamic housing market with significant price increases across various regions, driven by robust demand and limited supply. If you're considering moving or investing in a home, let's connect to explore opportunities in your desired area!

 

 

Reference: National Association of REALTORS® (NAR) - "Q1 Metro Home Price Report: More than 90% of Markets Post Increases" May 8, 2024.


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