The median cost of buying a single-family home in San Jose, California topped $2 million – as 90% of metropolitan areas saw increased housing prices, a new report from the National Association of Realtors (NAR) revealed.
While housing prices increased across the country in the second quarter, San Jose’s sky-high property values are especially significant. This is the first instance of the median cost of a single-family home exceeding $2 million since NAR began tracking in 1979.
“The record-high home prices in most metro markets bring good and bad news,” said NAR chief economist Lawrence Yun in a statement. “It’s terrific news for homeowners who are moving ahead in wealth gains. However, it’s difficult for those wanting to buy a home as the required income to qualify has roughly doubled from just a few years ago.”
The national median cost of buying a house continued to increase during the second quarter – rising to $422,100 for an already built, single-family home. This represents a 4.9% increase compared to this time last year.
Meanwhile, the average mortgage payment is also on the rise, with first time buyers spending 40% of their income on their monthly payments. In the second quarter, payments for a typical single family home were $2,262, which constitutes an 11.1% increase since the first quarter and a 10.3% year-over-year increase.
Despite these increases, some experts predict that families will have an easier time affording housing in the coming months.
“Housing affordability will improve in upcoming months,” Yun said in the NAR report. “Mortgage rates have fallen measurably, and more supply is reaching the market. Therefore, the income required to buy a home will decrease.”
Continue reading to learn which American metropolitan areas currently have the most expensive housing markets.
