The National Association of REALTORS® reported that home prices continued to rise in the fourth quarter of 2022. This quarter, 18% of the metro markets posted double-digit annual price appreciation compared to 46% in the previous quarter. National median prices rose 8.6% year over year to $378,400.  While median home prices rose by 3.9%, year-over-year price appreciation decelerated compared to the previous quarter's down 4.9%.

This quarter's monthly mortgage payments on a single-family home increased to $1,967 compared to $1,249 from a year ago.  Qualifying median family incomes rose to $94,438 compared to the third quarter of 2022, which was $88,250, and $85,629 a year ago. The effective 30-year fixed mortgage rate increased to 6.77% in the fourth quarter of 2022 compared to 3.13% 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 strongest price growth in the fourth quarter of 2022, as well as the yearly change in median existing single-family home prices among the top five highest and lowest growth metro areas of the fourth quarter of 2022.

These are the top five single-family metro areas with the highest home price appreciation:

Bar graph: Q4 2022 Top Five Single-family Metro Areas Median Sales Price Year-Over-Year Percent Change

These are the bottom five single-family metro areas with the slowest home price appreciation:

Bar graph: Q4 2022 Bottom Five Single-family Metro Areas Median Sales Price Year-Over-Year Percent Change

These are the most expensive metro areas for the fourth quarter of 2022:

Bar graph: Q4 2022 Top Five Most Expensive Single-family Markets

These are the least expensive metro areas for the fourth quarter of 2022:

Bar graph: Q4 2022 Bottom Five Least Expensive Single-family Markets

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 fourth quarter of 2022 was $112,234. At the 10% down-payment mark, the qualifying income was $106,327, and with a 20% down-payment, the income required to qualify for a mortgage was $94,513. 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 single-family homes.

Bar graph: Q4 2022 Qualifying Income Based on Sales Price of Existing Single-family Homes

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