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U.S. home prices have surpassed $400,000. Here’s how D-FW prices stack up

D-FW homes cost slightly less than the national median of $413,500, the National Association of Realtors reported.

Four in five U.S. metro areas and all the major Texas metros saw double-digit home price gains in the second quarter, according to the latest report from the National Association of Realtors.

Nationally, the median existing single-family home price surpassed $400,000 for the first time, rising 14.2% from a year ago to $413,500, the association reported. Prices grew at a slightly slower pace than in the first quarter, when they rose 15.4% year over year.

Higher home prices and mortgage rates this year have dissuaded many buyers in North Texas and across the country, contributing to the pricing cooldown.

“Home prices have increased at a pace that far exceeds wage gains, especially for low- and middle-income workers,” NAR chief economist Lawrence Yun said in a prepared statement, adding that the deceleration inevitably followed softening sales, “providing well-positioned prospective buyers a small measure of welcomed relief.”

Dallas-Fort Worth home prices rose 20.5% to $408,200 from the second-quarter of 2021 to 2022, according to NAR. Among the four largest Texas markets, San Antonio now tops the others with a 22% increase, with the Alamo City being the only market in the state to not see a slight slowdown in price growth.

The South had 44% of home sales in the second quarter and saw the largest price growth at 18.2%. Prices grew 12.7% in the West, 10.1% in the Northeast and 9.7% in the Midwest.

Fayetteville, Ark., led the nation with a 31.9% home price gain, followed by several Florida markets, including Lakeland, Naples and Sarasota.

“The local job market performance and supply availability are the clear distinguishing factors driving local home price growth,” Yun added. “Job growth is positive and should be applauded, but supply restraints are creating unnecessary barriers to ownership opportunities.”

With higher mortgage rates and home prices, families needed at least $100,000 to afford a 10% down payment mortgage in 53 markets, about double the number of markets where that was the case last quarter.

Monthly mortgage payments for the typical home nationwide rose by $433, or 31%, according to NAR. First-time homebuyers spent about 37% on their monthly payments, up from 29% in the first quarter. NAR considers mortgages unaffordable when monthly payments are more than 25% of a family’s income.

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