Homeowners have gained almost $150K in wealth over the past 5 years

If you ain a home, congratulations: You likely gained six figures in equity since 2019.

“A emblematic homeowner accumulated $147,000 successful lodging wealthiness successful nan past 5 years,” said National Association of Realtors® Chief Economist Lawrence Yun in the latest quarterly report.

That’s a profit of $29,400 per year—nearly half of the average U.S. salary.

But moreover pinch nan accelerated value appreciation complete nan past fewer years, nan likelihood of a lodging marketplace clang is minimal, according to Yun.

“Distressed spot income and nan number of people defaulting connected owe payments are some astatine historical lows,” said Yun.

Prices spiked successful nan 3rd quarter

Gains successful location equity weren’t constricted to immoderate regions of nan state either. Approximately 90% of metros knowledgeable location value gains successful nan 3rd 4th of 2024, arsenic the 30-year fixed owe rate ranged from 6.08% to 6.95%.

Single-family existing-home income prices climbed successful 87% of nan measured metro areas—196 of 226—in nan 3rd quarter, down from 89% successful nan anterior quarter.

Fifteen markets—or 7%—experienced double-digit annual value appreciation, down from 13% successful nan erstwhile quarter.

“Home prices stay connected coagulated crushed arsenic reflected by nan immense number of markets experiencing gains,” said Yun.

The nationalist median single-family existing-home value grew 3.1% from a twelvemonth ago, to $418,700, according to nan NAR.

The South and Northeast lead nan way

Where did homes alert disconnected nan listing pages nan astir successful July done September? Of each nan single-family existing-home income successful nan U.S., 45.1% were successful nan South.

However, nan Northeast came retired connected apical regarding location prices, pinch a 7.8% summation twelvemonth complete year.

It was followed by nan Midwest, astatine 4.3%; nan West, astatine 1.8%; and nan South, astatine 0.8%.

The 10 largest value increases

Homeowners smack dab successful nan Midwest person logic to observe as Illinois home prices skyrocketed successful nan 3rd quarter.

Four of nan apical 10 metros pinch nan largest year-over-year median value increases were successful nan Prairie State.

Every metro successful nan apical 10 knowledgeable double-digit gains of astatine slightest 10.6%.

Take a peek astatine them below.

1. Racine, WI

Median database price: $310,200
Median value increase: 13.7%

2. Youngstown, OH

Median database price: $171,100
Median value increase: 13.1%

3. Syracuse, NY

Median database price: $262,200
Median value increase: 13%

4. Peoria, IL

Median database price: $177,100
Median value increase: 12.4%

5. Springfield, IL

Median database price: $191,000
Median value increase: 12.3%

6. Burlington, VT

Median database price: $534,000
Median value increase: 11.7%

7. Shreveport, LA

Median database price: $234,700
Median value increase: 11.5%

8. Rockford, IL

Median database price: $201,900
Median value increase: 11.1%

9. Decatur, IL

Median database price: $142,200
Median value increase: 10.9%

10. Norwich, CT

Median database price: $399,700
Median value increase: 10.6%

Most costly markets successful nan U.S.

When it came to nan priciest markets successful nan U.S., it’s nary astonishment that 8 of nan apical 10 were successful costly California.

But Hawaii and Colorado also made nan trim successful nan 3rd quarter.

Scroll down for nan posh places wherever homes will group buyers backmost nan most, on pinch their median value summation (or decrease) twelvemonth complete year.

1. San Jose, CA

Median database price: $1,900,000
Median value increase: 2.7%

2. Anaheim, CA

Median database price: $1,398,500
Median value increase: 7.2%

3. San Francisco, CA

Median database price: $1,309,000
Median value increase: 0.7%

4. Urban Honolulu, HI

Median database price: $1,138,000
Median value increase: 7.2%

6. Salinas, CA

Median database price: $959,800
Median value increase: 1.5%

7. San Luis Obispo, CA

Median database price: $949,800
Median value increase: 6.7%

8. Los Angeles, CA

Median database price: $947,500
Median value increase: 5.6%

9. Oxnard, CA

Median database price: $947,400
Median value increase: 2.8%

10. Boulder, CO

Median database price: $832,200
Median value decrease: -3.0%

Housing affordability improves

Housing affordability has been a awesome rumor nan past fewer years, but it somewhat improved successful nan 3rd 4th arsenic owe rates trended lower.

The monthly owe costs connected a emblematic existing single-family location pinch a 20% down costs was $2,137, down 2.4% from a twelvemonth ago.

Families typically spent 25.2% of their income connected owe payments, falling from 27.1% twelvemonth complete year.

“Housing affordability has been a challenge, but nan worst appears to beryllium over,” said Yun.

Rising wages are now outpacing location value increases, according to Yun.

“Despite immoderate short-term swings, owe rates are group to stabilize beneath past year’s levels,” noted Yun. “More inventory is reaching nan marketplace and providing further options for consumers.”

Good news for first-time buyers

Sure, houses are still expensive—but first-time buyers knowledgeable somewhat amended affordability conditions compared pinch nan erstwhile quarter, which offered a glimmer of hope.

For a emblematic starter location weighted astatine $355,900 pinch a 10% down costs loan, nan monthly owe costs declined to $2,097, down 5.5% from nan anterior quarter.

That was a alteration of $49, aliases 2.3%, from a twelvemonth ago—which intends payments are moving successful nan correct direction.

Most homebuyers person heard of nan “30% rule,” which recommends they walk nary much than 30% of their income connected a house.

However, nan precocious value of lodging intends this is no longer feasible today,

First-time buyers typically spent 38% of their family income connected owe payments, down from 40.6% successful nan erstwhile quarter.

Just really overmuch did homebuyers request to gain to even qualify for a owe for illustration this?

A family needed a qualifying income of astatine slightest $100,000 to spend a 10% down costs owe successful 42.5% of markets, down from 48% successful nan anterior quarter.

However, location are still options retired location for group who gain less—although they are fewer and acold between.

In 2.2% of markets, a family needed a qualifying income of little than $50,000 to spend a home—which was down from 2.7% successful nan erstwhile quarter.