The National Association of REALTORS® reported that home price growth remained strong for the second quarter of 2022. Prices continued to rise, with 80% of the markets showing double-digit home price appreciation. National median prices rose 14.2% year over year to $413,500, rising above $400,000 for the first time.
This quarter's monthly mortgage payments on a single-family home increased to $1,810 compared to $1,213 a year ago. Qualifying median family incomes rose to $86,880 compared to the first quarter of 2022, which was $66,096 and $58,224 a year ago. The effective 30-year fixed mortgage rate increased to 5.32% in the second quarter of 2022 compared to 3.05% one year ago.
Knowing the mortgage rates and the qualifying incomes for down payments will help potential homeowners figure out what metro areas are affordable.
Here is a look at the metro areas with the most substantial price growth in the second quarter of 2022, as well as a look at the yearly change in median existing single-family home prices among the top five highest and lowest growth metro areas of the second quarter of 2022.
The top five single-family metro areas with the highest home price appreciation in Q2 2022 were Fayetteville-Springdale-Rogers, AR-MO; Lakeland-Winter Haven, FL; Naples-Immokalee-Marco Island, FL; North Port-Sarasota-Bradenton, FL; and Myrtle Beach-Conway-North Myrtle Beach, SC-NC.
The bottom five single-family metro areas with the slowest home price appreciation in Q2 2022 were Bismark, ND; Davenport-Moline-Rock Island, IA-IL; Fond du Lac, WI; Pittsfield, MA; and Trenton, NJ.
The most expensive metro areas for the second quarter of 2022 were San Jose-Sunnyvale-Santa Clara, CA; San Francisco-Oakland-Hayward, CA; Anaheim-Santa Ana-Irvine; CA; Urban Honolulu, HI; and San Diego-Carlsbad, CA.
The least expensive metro areas for the second quarter of 2022 were Elmira, NY; Youngstown-Warren-Boardman, OH-PA; Peoria, IL; Cumberland, MD-WV; and Decatur, IL.
Qualifying Income Based on Sales Price of Existing Single-family Homes for Metropolitan Areas by Region
For the US, at the 5% down-payment threshold, the qualifying income for the second quarter of 2022 was $104,940. At the 10% down-payment mark, the qualifying income was $99,417, and with a 20% down-payment, the income required to qualify for a mortgage was $88,371. The West led all regions with the highest qualifying income, while the Midwest had the lowest income for 5%, 10%, and 20% down payments on a single-family home.