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About 80% of US Metro Areas Reported Home Price Gains in Q2, NAR Says

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US home prices advanced further in Q2, with 80% of metro areas reporting price increases for single family homes over the quarter, the National Association of Realtors reported Tuesday, up from 71% in the previous quarter.

Of the areas that reported price appreciation over the period, 5% reported double-digit gains, NAR said, the same as in the previous quarter.

The median single-family existing-home price rose by 1.5% year-over-year to $434,900, up from 0.5% in the previous quarter.

"Home sales increased despite mortgage rates rising," said NAR Chief Economist Lawrence Yun. "This testifies to the potential housing demand building up from steady job and income gains."

"It is welcoming to see incomes rising faster than home prices, which has helped boost affordability -- but the big short-term challenge to affordability is coming from rising mortgage rates," he added.

Across the regions of the US, prices grew by 3.8% year-over-year in the Northeast, 3.6% in the Midwest and 1% in South, but fell by 0.8% in the West.

The typical monthly mortgage payment after a 20% down payment rose to $2,199, up $219 from the previous quarter but down $52 from a year ago.

According to NAR, a typical family spent 23.8% of its income on mortgage payments in Q2, up from 21.8% in the previous quarter but down from 25.5% in the same quarter a year ago.

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