“The expensive markets in the West, where home prices declined last year, are roaring back,” Yun said. “Price dips in that region were viewed as second-chance opportunities by many buyers.”
Eight of the 10 most expensive housing markets were in California, topped by San Jose at a median of $1.84 million (up 13.7% from a year earlier). Other pricey markets included Anaheim, San Francisco, Honolulu, San Diego, and Los Angeles.
While home prices surged, housing affordability did improve slightly in Q1 as mortgage rates ticked lower. The typical monthly mortgage payment was $2,037, down 5.7% from Q4 2023 but still up 9.3% annually.
First-time buyers remained hard-pressed, requiring a median $1,998 monthly payment for a typical starter home purchased with 10% down. That took 36.5% of their family income for mortgage costs alone.
A qualifying income over $100,000 was needed to afford a 10% down payment mortgage in 40.7% of metro areas in the first quarter.
