What happened to home prices in Q4 2024?
The National Association of Realtors (NAR) released home price data from Q4 2024. The report showed that prices for single-family homes rose in 201 of 226 metro areas in the fourth quarter of last year. Also, the national median single-family existing-home price climbed 4.8% from a year ago to $410,100.
While home prices nationally were up, the monthly mortgage payment on a typical single-family home with a 20% down payment was down 1.7% from a year ago. The report stated that the average monthly payment for the conditions listed above was $2,124.
NAR chief economist Lawrence Yun, stated, “Record-high home prices and the accompanying housing wealth gains are definitely good news for property owners. However, renters who are looking to transition into homeownership face significant hurdles."
Where did home prices change the most in Q4 2024?
On a region-by-region basis, the U.S. housing market saw the following changes in home prices:
- The Southern region of the U.S. saw the largest share of single-family home sales in 2024, but only saw a 2.1% increase in home prices.
- Prices increased 10.6% in the Northeast.
- Home prices were up 8.0% in the Midwest
- The Western region saw a 4.0% increase in home prices.
Which metros saw the largest changes in home prices?
According to the report, six of the top 10 metro areas with the largest year-over-year increase in median home price increases were in the Midwest. The metro areas with the biggest changes were as follows:
- Jackson, MS up 28.7%
- Peoria, IL up 19.6%
- Chattanooga, TN up 18.2%
- Elmira, NY up 17.6%
- Fond du Lac, WI up 17.6%
- Cleveland-Elyria, OH up 16.4%
- Bismarck, ND up 15.8%
- Akron, OH up 15.5%
- Blacksburg-Christiansburg, VA up 15.0%
- Canton-Massillon, OH up 14.9%
The report also detailed the most expensive metros in which to purchase a single-family home. Eight of top 10 most expensive metro areas for Q4 2024 were located in California. San Jose-Sunnyvale-Santa Clara, CA topped the list with an average home cost of $1,920,000, which is a year-over-year increase of 9.7%.
How about housing affordability in Q4 2024?
The best news for prospective home buyers in the report was that home affordability showed improvement despite the increase in home prices.
The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $2,124, down 0.8% from the third quarter ($2,141) and 1.7% from one year ago.
Also, families typically spent 24.8% of their income on mortgage payments, down from 25.2% in the previous quarter and 26.5% one year ago.
First-time homebuyers also caught a break in Q4 2024. For a typical starter home valued at $348,600 with a 10% down payment loan, the monthly mortgage payment declined to $2,083, down 0.9% from the previous quarter ($2,101). That was a decrease of $35, or 1.7%, from one year ago ($2,118).
Are you ready to start the homebuying process? Start with a mortgage pre-approval and begin your journey toward your dream home with Rate! A pre-approval shows buyers and real estate agents that you’re serious, and gives you an idea of how much of a mortgage you’re likely to get approved for.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Rate. Rate, its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
