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Home prices in San Jose, California, have soared to record levels in the second quarter of 2024, according to the National Association of Realtors®, part of a trend that saw most metro areas of the U.S. record gains even as a rise in mortgage rates have made home loans more expensive.
The median price for a previously-owned single-family home in San Jose rose to a little more than $2 million, NAR revealed in a report published Tuesday. "It's the first time since NAR began tracking metro area single-family home prices in 1979 that a metro area's median price exceeded $2 million," the organization said in a statement. NAR pointed out in the report that about 90 percent of metro areas in the U.S. have seen prices go up as mortgage rates have ticked up to above 7 percent.
"The record-high home prices in most metro markets bring good and bad news," NAR chief economist Lawrence Yun said in a statement. "It's terrific news for homeowners who are moving ahead in wealth gains. However, it's difficult for those wanting to buy a home as the required income to qualify has roughly doubled from just a few years ago."
Elevated mortgage rates have made it tough for prospective homeowners, NAR suggested, but with recent trends suggesting rates could be declining, things could change for buyers. "Housing affordability will improve in upcoming months," Yun said in the statement. "Mortgage rates have fallen measurably, and more supply is reaching the market. Therefore, the income required to buy a home will decrease."