Prices Climb In Q1 As Demand For Budget-Friendly Homes Heats Up

Home sale prices went up last quarter due to high competition in budget-friendly markets. The National Association of Realtors’ latest quarterly report found that single-family existing-home sales prices increased in 152 of 221 metros — about 70% — in Q1 2023.  The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $1,859, up 33% YOY. The divide in demand between affordable and expensive markets is the main factor in these numbers. High-end markets with the most expensive homes are seeing declines, while cheaper areas are seeing intense competition for the few affordable homes for sale, pushing prices up. “Generally speaking, home prices are lower in expensive markets and higher in affordable markets, implying greater…