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The National Association of REALTORS® reported that the year started off with strong home price growth and continued for the second quarter of 2021. Prices continued to rise, with 94% of the markets showing double-digit home price appreciation. National median prices rose 22.9% year over year to $357,900.
Monthly mortgage payments on a single-family home this quarter increased to $1,215 compared to $1,019 from a year ago. Qualifying median family incomes rose to $58,314 compared to first quarter of 2021, which was $51,055, and $48,912 a year ago. The effective 30-year fixed mortgage rate decreased to 3.05% in the second quarter of 2021 compared to 3.29% 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 for them.
Here is a look at the metro areas with the strongest price growth in the second quarter 2021, 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 2021.
These are the top five single-family metro areas with the highest home price appreciation:
These are the bottom five single-family metro areas with the slowest home price appreciation:
These are the most expensive metro areas for the second quarter 2021:
These are the least expensive metro areas for the second quarter 2021:
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 2021 was $69,248. At the 10% down-payment mark, the qualifying income was $65,603 and with a 20% down-payment, the income required to qualify for a mortgage was $58,314. 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.
