Home prices in major U.S. metropolitan areas shot up in the second quarter, possibly signaling a new trend, according to a report by HSH.com, a mortgage tracking service.

This meant that homebuyers needed a higher salary than in the first quarter to be able to afford a median-priced home in their area.

The price increases were notable in that only six metro areas of the 27 HSH.com analyzed had experienced home price rises of more than 1% in the first quarter.

Median home prices increased quarter over quarter in 25 of the 27 metro areas studied, and substantially in some areas including by 24% in Cleveland, by 18% in Chicago and by 17% in both Cincinnati and Pittsburgh.

At the same time, mortgage rates dropped in every metro area.

The study found that buyers in only three metro areas needed a smaller salary in the second quarter than in the first to afford a median-priced home. The South and the Rust Belt dominated in the ranking of the most affordable markets.

In its analysis, HSH.com used second-quarter NAR data for median-home prices and its own second quarter average interest rate for 30-year fixed-rate mortgages to calculate how much salary would be required to afford principal, interest, taxes and insurance in 27 metro areas.

It used standard 28% front-end debt ratios and a 20% down payment subtracted from the NAR’s median-home-price data to arrive at its figures. It factored in available information on property taxes and homeowner’s insurance costs to better reflect the income needed in a given market.

Following are the 10 most affordable metro areas for homebuyers in the second quarter, with changes from the previous quarter noted in parentheses.

City Hall in Orlando. 

10. Orlando, Florida

Salary needed: $49,382.26 (-$460.94)

Median home price: $223,000 (0.9%)

30-year fixed mortgage rate: 3.76% (-0.18%)

Monthly payment: $1,152.25

 

The San Antonio River Walk. (Photo: AP)

9. San Antonio

Salary needed: $48,752.98 ($1,759.96)

Median home price: $210,500 (7.67%)

30-year fixed mortgage rate: 3.71% (-0.16%)

Monthly payment: $$1,137.57

Tampa, Florida skyline 

8. Tampa, Florida

Salary needed: $44,874.70 (-$704.99)

Median home price: $199,900 (-0.35%)

30-year fixed mortgage rate: 3.86% (-0.15%)

Monthly payment: $1,047.08

Phoenix skyline 

7. Phoenix

Salary needed: $44,715.99 ($1,049.08)

Median home price: $234,700 (5.2%)

30-year fixed mortgage rate: 3.71% (-0.18%)

Monthly payment: $1,043.37

Atlanta skyline 

6. Atlanta

Salary needed: $40,092.12 ($3,267.15)

Median home price: $192,000 (14.42%)

30-year fixed mortgage rate: 3.71% (-0.17%)

Monthly payment: $935.48

 Hart Plaza in Detroit. (Photo: AP)

5. Detroit

Salary needed: $38,541.83 ($3,003.94)

Median home price: $164,200 (15.61%)

30-year fixed mortgage rate: 3.78% (-0.19%)

Monthly payment: $899.31

 St. Louis skyline

4. St. Louis

Salary needed: $38,131.22 ($3,089.80

Median home price: $170,300 (15.22%)

30-year fixed mortgage rate: 3.7% (-0.16%)

Monthly payment: $889.73

Cincinnati skyline 

3. Cincinnati

Salary needed: $37,179.18 ($3,395.41)

Median home price: $160,600 (16.55%)

30-year fixed mortgage rate: 3.79% (-0.09%)

Monthly payment: $867.51

 Rock and Roll Hall of Fame in Cleveland. (Photo: AP)

2. Cleveland

Salary needed: $34,433.95 ($3,935.82

Median home price: $138,100 (24.08%)

30-year fixed mortgage rate: 3.72% (-0.14%)

Monthly payment: $803.46

 Pittsburgh skyline.

1. Pittsburgh

Salary needed: $32,390.09 ($2,909.13)

Median home price: $140,500 (17.13%)

30-year fixed mortgage rate: 3.62% (-0.13%)

Monthly payment: $755.77

 

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