Home prices in the Wilmington metro area reached an all-time high in the second quarter of 2024, pushing the income required to purchase a home to new heights, according to the latest quarterly report from the National Association of Realtors (NAR).
- The median home price in Wilmington surged to $467,400, marking a 3.0% increase from the first quarter and a 6.4% rise compared to the same period in 2023.
- This surge in home prices has propelled Wilmington to the 52nd most expensive metro area in the United States, a slight drop from 44th place in the previous quarter but consistent with its ranking in the second quarter of last year.
Big Money: As home prices continue to climb, the financial burden on prospective homeowners has grown significantly. In the second quarter of 2024, a borrower putting down 20% on a conventional loan would need to earn $121,380 annually to afford the median-priced home in Wilmington. This represents a 5.5% increase in required income from the first quarter and a 12% jump from a year ago.
- Notably, the qualifying income in Wilmington has remained above six figures since it first crossed that threshold in the fourth quarter of 2022. For context, in the fourth quarter of 2019, the qualifying income was a much more manageable $49,184.
Nationwide: Wilmington’s housing market is not alone in experiencing price increases. Nearly 90% of metro markets across the country recorded home price gains in the second quarter of 2024, even as the 30-year fixed mortgage rate ranged from 6.82% to 7.22%. This widespread price appreciation is a testament to the ongoing demand for housing, despite higher borrowing costs and rising insurance premiums.
- 13% of the 223 metro areas tracked by the NAR experienced double-digit price increases over the past year, this is down from 30% in the first quarter of 2024. The cooling in the rate of increase may be a sign that higher mortgage rates are beginning to temper the market’s growth.
For prospective homebuyers in Wilmington, these trends underscore the increasing financial challenges of entering the housing market. With home prices at record levels and qualifying incomes continuing to rise, affordability remains a significant concern. As the housing market continues to evolve, buyers and sellers alike will be closely watching how these dynamics unfold in the coming months.
