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Home prices hit new record highs in Q2

(CNN)Home prices continue to rise in Q2 despite lower sales due to rising mortgage rates continued, and many cities increased. We see a double-digit price increase from the first half of the year.

The median single-family home price for the second quarter was $413,500, according to the National Association of Realtors' latest quarterly report. The quarterly price crossed $400,000 for the first time.

House prices rose 14.2% y/y in the quarter, slightly lower than the 15.4% y/y increase experienced in the first quarter.

The majority of US metropolitan areas, 80%, saw his double-digit home price gains last quarter. That is 148 out of 185. This is up from 70% of cities in Q1.

NAR Chief Economist Lawrence Yun said, "Housing prices are rising far faster than wages, especially for low- and middle-income workers.

Continuing increases in home prices, coupled with rising mortgage rates that surpassed 5% in the second quarter, make it much harder to afford a home.

Monthly mortgage payments for a typical existing single-family home with a 20% down payment jumped 32% quarter-on-quarter and nearly 50% from a year ago, according to a NAR report.

Monthly mortgage payments for a typical existing single-family home with a 20% down payment jumped to $1,841 last quarter, up from $444 a month in the first quarter, according to the report. $, up $612 per month from a year ago.

Families typically spend 24.3% of their income on mortgage payments, up from 18.7% last quarter and 16.9% a year ago. In general, a home is considered “affordable” if a homeowner pays less than 25% to 30% of their gross income for housing.

First-time buyers typically spent 36.8% of household income on mortgage payments in Q2, up from 28.7% in the previous quarter.

According to the report, for a typical $351,500 initial home with a 10% down payment, monthly mortgage payments increased to $1,810, down $433,1 from the first quarter. An increase of $597 from last year.

Cities with the highest inflation rate

A report found that a family needs at least I needed to make $100,000. This is almost double the 27 markets that fell into this category last quarter.

There were 23 markets where families needed an income of less than $50,000 to buy a home. Syracuse, New York or Florence, South Carolina. This is a significant drop from last quarter's 63 markets.

"Local job market performance and availability are clear differentiators driving local housing price growth," Yun said. “Employment growth is positive and to be applauded, but supply constraints create unnecessary barriers to ownership opportunities.”

accounted for 44%, recording the largest price increase of 18.2%. Prices in the quarter were up 12.7% in the West, 10.1% in the Northeast and 9.7% in the Midwest.

Greater metropolitan areas, including Fayetteville, Springdale and Rogers, Arkansas, experienced the largest increase in home prices in the second quarter, up 31.9% year-over-year. Seven of the top 10 cities with the highest annual price increases are in Florida, with all cities seeing price increases of 25% or more from the year before, including the Lakeland and Winter Haven areas, which increased 31.4%. I was. Naples, +28.9%. Sarasota rose 28.8%. Tampa and St. Petersburg rose 28.0%. Cape Coral and Fort Myers rose 27.8%. Punta Gorda rose 27.4%. Ocala rose 26.7%. The top 10 non-Florida cities include Ogden, Utah, up 25.5%, and the Myrtle Beach area, South Carolina, up 28.5%.

Five of the 10 most expensive markets in the country are in California, including San Jose with a median of $1.9 million ; Includes Anaheim and San Diego for dollars. $965,900, Los Angeles $825,700.

Other high-cost cities include Honolulu, with a median price of $1,145,000. Boulder, Colorado, $933,400. Naples, Fla. $850,000. Seattle $818,900. Boston $722,200.

Domestic home prices are not expected to fall, but softening sales have led to price cuts and slower price appreciation in many markets, offering little relief to future buyers. Yun said it could offer.

"The recent drop in mortgage rates will bring more buyers to the market," he said. "Especially where housing prices are still relatively affordable and jobs are being added."