The National Association of REALTORS® reported that home price growth remained strong for the first quarter of 2022. Prices continued to rise, with 70% of the markets showing double-digit home price appreciation. National median prices rose 15.7% year-over-year to $368,200.
Monthly mortgage payments on a single-family home this quarter increased to $1,383 compared to $1,064 a year ago. Qualifying median family incomes rose to $66,365 compared to the fourth quarter of 2021 which was $59,371 and $51,055 a year ago. The effective 30-year fixed mortgage rate increased to 3.86% in the first quarter of 2021 compared to 2.93% one year ago.
Knowing the mortgage rates and the qualifying incomes for downpayments will help potential homeowners figure out what metro areas are affordable for them. Here is a look at the metro areas with the strongest price growth in the first quarter of 2022, as well as a look at the yearly change in median existing single-family home prices among the top five highest and lowest growth metro areas of the first quarter of 2022.
The top five single-family metro areas with the highest home price appreciation were Punta Gorda, FL (34.4%); Ocala, FL (33.8%); Ogden-Clearfield, UT (30.8%); Lakeland-Winter Haven, FL (30.1%); and Decatur, AL (28.9%).
The bottom five single-family metro areas with the slowest home price appreciation were Bridgeport-Stamford-Norwalk, CT (1.2%); Bismarck, ND (0.0%); Rockford, IL (-1.0%); Topeka, KS (-1.9%); and Cape Girardeau, MO-IL (-2.0%).
The most expensive metro areas for the first quarter of 2022 were San Jose-Sunnyvale-Santa Clara, CA ($1,875,000); San Francisco-Oakland-Hayward, CA ($1,380,000); Anaheim-Santa Ana-Irvine, CA ($1,260,000); Urban Honolulu, HI ($1,128,000); and San Diego-Carlsbad, CA ($905,000)
The least expensive metro areas for the first quarter of 2022 were Binghamton, NY ($137,000); Youngstown-Warren-Boardman, OH-PA ($132,000); Cumberland, MD-WV ($129,000); Peoria, IL ($127,000); and Decatur, IL ($107,000).
Qualifying Income Based on Sales Price of Existing Single-family Homes for Metropolitan Areas by Region
For the US, at the 5% down payment threshold, the qualifying income amount for the first quarter of 2022 was $78,808. At the 10% down payment mark, the qualifying income was $74,661, and with a 20% down payment, the income required to qualify for a mortgage was $66,365. 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.