Home prices increased in most U.S. metro areas during the first quarter, according to the National Association of REALTORS® (NAR), continuing to build homeowner equity even as affordability remains difficult for many buyers. Of the 235 metro markets tracked, 71% posted price gains, and more than a dozen saw double-digit increases. Nationally, the median single-family home price reached $404,300, up 0.5% from a year ago.
NAR Chief Economist Lawrence Yun said rising home values continue to strengthen housing wealth for homeowners. Over the past six years, the typical homeowner has gained about $128,100 in equity. The Northeast led regional price growth with a 4.9% annual increase due to persistent housing shortages, followed by the Midwest at 3.6%.
Although home prices remain high, easing mortgage rates provide some relief. As a result, the monthly mortgage payment on a typical home with a 20% down payment fell by about $140 year over year to $1,979.
Real estate professionals say accurate pricing is becoming increasingly important for sellers. Overpriced homes are tending to sit on the market longer, while competitively priced and well-presented homes are still attracting strong demand and, in some cases, multiple offers above asking price.
Source : Home Prices Surge Again, Despite Affordability Strain