The latest housing data reveals varying home values across counties, with San Mateo County, CA leading at $1,582,170. Affordability challenges persist as mortgage rates surged nearly 3 percentage points in Q1 2023, impacting monthly payments.
In the first quarter of 2023, the real estate landscape in the United States witnessed distinct patterns, particularly in terms of median home values across counties. The top five counties commanding the highest median home prices were as follows:
- 1. San Mateo County, CA: $1,582,170
- 2. Nantucket County, MA: $1,563,860
- 3. Santa Clara County, CA: $1,512,500
- 4. Marin County, CA: $1,473,510
- 5. San Francisco County, CA: $1,464,880
These figures, derived by applying the House Price Index growth from FHFA to data from the American Community Survey (ACS) and the National Association of REALTORS®, reflect the cumulative value of all homes, providing a comprehensive perspective beyond home sales.
However, the real estate narrative is nuanced. Despite localized declines in home prices, a significant factor influencing affordability is the surge in mortgage rates. In the first quarter of 2023, mortgage rates witnessed a nearly twofold increase compared to the previous year, registering a staggering uptick of almost 3 percentage points.
This increase in mortgage rates is conspicuously impacting housing affordability. A case in point is San Joaquin County, CA, where home prices have risen by approximately 2 percentage points in the past year. This surge, coupled with the elevated mortgage rates, translates to a substantial spike in monthly mortgage payments, surpassing $840 compared to the same period last year.
The intricate interplay between home prices and mortgage rates underscores the evolving dynamics of the real estate market, with implications for both prospective homebuyers and the broader economic landscape.
