Median Home Sale Price Up in 99% of Metros

The median home sale price rose in 99% of metro areas in the U.S., with 94% seeing double-digit growth, a new NAR report found.

Compared to the second quarter of 2020, the median sale price of single-family homes jumped 22.9% or $66,800 in the second quarter of 2021. The sales price hit $357,900. The report found that in 25% of markets, the median single-home family sales price rose over $100,000 since the second quarter of 2018, a three-year period. In that same period, the average price gain for a home was $89,900.

While mortgage rates remain at historic lows, mortgage payments are another story. The average monthly mortgage payment on a 30-year-fixed-rate with 20% down payment increased $196, reaching $1,215. The monthly mortgage payment as a share of a family income grew to 16.5%, up from 14% year to year. For first-time buyers, their mortgage payment, based on a 10% down payment, now represents 25% of their household income, up from 21.2% a year ago. However, in 46% of markets, a family needed less than $50,000 to afford a home, but that is a decrease from the first quarter of nearly 11%.

“Housing affordability for first-time buyers is weakening,” Dr. Lawrence Yun, NAR’s chief economist, explained. “Unfortunately, the benefits of historically-low interest rates are overwhelmed by home prices rising too fast, thereby requiring a higher income in order to become a homeowner.”

The Northeast led the price growth at 21.8%, followed by the South, West and Midwest.

However, Yun predicts that the housing market will be seeing an increase in inventory, as well as slightly less demand, hopefully leading to a break for buyers.