T
he National Association of Realtors' latest quarterly report shows that 87% of US metro areas experienced home price increases in Q3 2024, with 7% recording double-digit gains. This is a decrease from the previous quarter's 13%. NAR Chief Economist Lawrence Yun notes that "home prices remain stable as indicated by the majority of markets showing gains."

    The national median price for single-family existing homes rose 3.1% to $418,700 compared to Q3 last year. The South led in single-family home sales with a 45.1% share and a 0.8% year-over-year price increase.

    Regional price increases were: 7.8% in the Northeast, 4.3% in the Midwest, and 1.8% in the West. The top 10 metro areas with the largest year-over-year median price gains saw increases of at least 10.6%, with Illinois having four markets on this list.

    California dominated the list of the 10 most expensive US markets, including San Jose-Sunnyvale-Santa Clara ($1,900,000; 2.7%) and Anaheim-Santa Ana-Irvine ($1,398,500; 7.2%). Almost 13% of markets (29 of 226) experienced price declines in Q3.

    Housing affordability saw slight improvement as mortgage rates eased, with monthly mortgage payments on a typical single-family home falling to $2,137. Families spent about 25.2% of their income on mortgage payments, down from 26.9% in Q2 and 27.1% a year ago.

    First-time buyers also saw marginally better affordability, with the monthly mortgage payment for a typical starter home priced at $355,900 falling to $2,097. First-time buyers typically spent 38% of their income on mortgage payments, down from 40.6% in the previous quarter.

    To afford a 10% down payment mortgage, a family needed an income of at least $100,000 in 42.5% of markets, down from 48% in Q2. Only 2.2% of markets required an income of less than $50,000 to afford a home, a decrease from 2.7% the previous quarter.