Home Prices Rise in 89% of Metro Markets as Housing Wealth Gap Widens

The latest quarterly report from the National Association of REALTORS® reveals a continuing trend of home price increases across American metropolitan areas, with Washington state markets showing particularly robust growth amid national gains.

The report, released in February, shows that 201 out of 226 metro markets experienced home price increases during the fourth quarter of 2024, representing 89% of tracked areas. This growth occurred as 30-year fixed mortgage rates fluctuated between 6.12% and 6.85%.

The national median single-family existing-home price reached $410,100, marking a 4.8% increase from the previous year. This growth accelerates from the third quarter's 3.2% year-over-year increase. Over a five-year span from 2019 to 2024, median home prices have surged by nearly 50%.

"Record-high home prices and the accompanying housing wealth gains are definitely good news for property owners," said NAR Chief Economist Lawrence Yun. "However, renters who are looking to transition into homeownership face significant hurdles."

In Washington state, the Seattle-Tacoma-Bellevue region led price appreciation with median single-family home prices reaching $785,300, marking a 7.3% increase from the previous year. The area's prices peaked in the second quarter at $829,600 before moderating in the latter half of the year. The Spokane-Spokane Valley area recorded one of the state's strongest performances, with prices rising 8.1% year-over-year to $429,800, while the Kennewick-Richland area saw more modest gains of 2.6% to $433,800.

The Western region, which includes Washington state, saw an overall 4.0% price increase, while the Northeast led regional gains with a 10.6% rise, followed by the Midwest at 8.0%. The South, which accounted for the largest share of single-family existing-home sales at 45.1%, registered a 2.1% price appreciation.

Housing affordability showed marginal improvement in the fourth quarter. The typical monthly mortgage payment for an existing single-family home with a 20% down payment decreased to $2,124, down 0.8% from the third quarter and 1.7% from the previous year. Families typically allocated 24.8% of their income to mortgage payments, an improvement from 25.2% in the previous quarter.

First-time buyers saw slight relief in affordability metrics. For a typical starter home valued at $348,600 with a 10% down payment, the monthly mortgage payment decreased to $2,083, representing a 0.9% reduction from the previous quarter.

"While recognizing many workers may not have the option to relocate, those who can or are willing to move may find more affordable conditions, especially given the wide variance in home prices nationwide," Yun noted.

The report indicates that 43.8% of markets now require a qualifying income of at least $100,000 for a 10% down payment mortgage, up from 42.5% in the previous quarter. Only 2.2% of markets remain accessible to buyers with qualifying incomes below $50,000.

California dominated the list of most expensive markets, claiming eight of the top ten spots, with the San Jose-Sunnyvale-Santa Clara area leading at $1,920,000, representing a 9.7% increase from the previous year.

The data shows that while price declines occurred in some areas - 24 out of 226 markets - this represents an improvement from the third quarter when 13% of markets experienced decreases. All major Washington markets maintained positive price growth throughout the year, reflecting the region's strong economic fundamentals and sustained housing demand.