Single-family home prices continued their strong upward trend last quarter, with a large majority seeing double-digit increases, according to the National Association of Realtors. And as home prices continue to increase, so do mortgage payments and qualifying incomes. The national median home price advanced 14.9% year-over-year to $315,900, monthly mortgage payments increased to $1,040, and qualifying median family incomes reached $49,908. Just under 90% of markets saw home prices increase by double digits. NAR identified the metros with the highest home price appreciation, year-over-year change, along with the most and least expensive metros. Read more to see if your market made the list.
For the US, at the 5% down-payment threshold, the qualifying income amount for the fourth quarter of 2020 was $59,266. At the 10% down-payment mark, the qualifying income was $56,147 and with a 20% down-payment, the income required to qualify for a mortgage was $49,908. 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.