The National Association of REALTORS® reported that quarterly home prices increased again this past quarter. Prices continued to rise, with 96% of the markets showing home price appreciation. National median prices rose 4.2% year over year to $291,300. Lower inventory levels as well as low mortgage rates have contributed to price growth this quarter. Fifteen metro areas experienced double-digit growth in the second quarter of 2020. Knowing the mortgage rates and the qualifying incomes for down payments will help potential homeowners figure out what metro areas are affordable for them. Here is a look at the metro areas with the strongest price growth in the second quarter 2020, 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 2020.
These are the top five single-family metro areas with the highest home price appreciation:
These are the bottom five single-family metro areas that had a decline in home price appreciation:
These are the most expensive metro areas for the second quarter of 2020:
These are the least expensive metro areas for the second quarter 2020:
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 amount for the second quarter of 2020 was $58,613. At the 10% down-payment mark, the qualifying income was $55,528 and with a 20% down-payment, the income required to qualify for a mortgage was $49,358. 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.