Home prices in the United States have been steadily increasing, with the median sale price now 4.8% higher than last year's figures.
As of May 2024, the median sale price of homes is $438,483, according to Redfin. That is about 45% higher than the average home value in 2020, prior to the COVID-19 pandemic housing boom.
Nationally, annual home prices rose by 6.6% as of the first quarter of 2024. That is the highest increase recorded since 2022, per Visual Capitalist, which analyzed data from the Federal Housing Finance Agency. Home prices dropped only in the District of Columbia during the first quarter, declining by 1.50%, the analysis found.
With home prices soaring, the down payment required for buyers to comfortably afford monthly mortgage payments also increased to $127,750. A mortgage payment is considered comfortably affordable when the buyer does not need to spend more than 30% of their income on housing costs.
Where Home Prices Increased Most
Among states, Vermont led the growth in home prices. In the first quarter of 2024, the values of houses in Vermont rose by 12.8%. That increase was attributed to the low inventory in the state's housing market, which dropped to the lowest point in over a decade, Visual Capitalist noted.
Below are the states with the greatest year-over-year home price increases recorded in the first quarter of 2024.
Vermont
Home price change year-over-year in Q1 2024: 12.80%
New Jersey
Home price change year-over-year in Q1 2024: 11.60%
New York
Home price change year-over-year in Q1 2024: 10.90%
Delaware
Home price change year-over-year in Q1 2024: 10.70%
Kansas
Home price change year-over-year in Q1 2024: 9.90%
Wisconsin
Home price change year-over-year in Q1 2024: 9.90%
Connecticut
Home price change year-over-year in Q1 2024: 9.60%
Illinois
Home price change year-over-year in Q1 2024: 9.40%
New Hampshire
Home price change year-over-year in Q1 2024: 9.40%
Maine
Home price change year-over-year in Q1 2024: 9.10%
Massachusetts
Home price change year-over-year in Q1 2024: 8.80%
Rhode Island
Home price change year-over-year in Q1 2024: 8.50%
South Carolina
Home price change year-over-year in Q1 2024: 8.50%
Nevada
Home price change year-over-year in Q1 2024: 8.10%
Indiana
Home price change year-over-year in Q1 2024: 8.00%
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