Home Prices In Q2 Rose By Double-Digits In 4 In 5 Metro Areas
Summary
According to the NAR report, 80%, or 148, of the 185 tracked metro areas posted double-digit price gains, up from 70% in the previous quarter. “Home prices have increased at a pace that far exceeds wage gains, especially for low- and middle-income workers,” NAR Chief Economist Lawrence Yun said. The top 10 metro areas with the largest year-over-year price gains all recorded increases greater than 25%, with seven of those markets located in Florida. “Job growth is positive and should be applauded, but supply restraints are creating unnecessary barriers to ownership opportunities.” Housing affordability tumbled dramatically in the second quarter of 2022, driven by sharply rising mortgage rates and climbing home prices. For a typical starter home valued at $351,500 with a 10% down-payment loan, the mortgage payment rose to $1,810, an increase of $433, or 31%, from the first quarter and $597, or 49%, from a year earlier.