US low housing inventory coupled with record-low mortgage rates has led to a surge in median prices for residential houses in the second quarter.
Source: National Association of Realtors
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The quarterly report revealed that 94% of 183 metros areas recorded double-digit price increases, up from 89% in Q1 of 2021.
The median sale price for existing single-family homes rose by 22.9% to $357,900, $66,800 higher YoY. Northeast was leading with 21.8% growth YoY, followed by South with 21%, the West with 20.9%, and the Midwest with 17.1%.
NAR Chief Economist Lawrence Yun stated the gains in home prices and the corresponding housing wealth accumulation have been great over the last 12 months but are unlikely to repeat in 2022.
As home prices increased, the monthly mortgage payment on an existing single-family home financed by a 30-year fixed-rate loan and a 20% down payment increased to $1,215, a YoY growth of $196.
Among all homebuyers, the monthly mortgage payment as a percentage of the household income increased to 16.5% in Q2 of 2021. Housing affordability for first-time homeowners continued to weaken.