Home Prices Rose 15% in This Midwest City Last Month. How Does Your City Compare? | Global News Avenue

Home prices rose everywhere in December, according to the latest data from Redfin.

For the first time since May 2022, house price All of the top 50 metro areas saw increases in December. After rising in just 19 metro areas in April 2023, home prices have been rising in more cities for a year and a half.

Affordable cities in the Midwest have historically seen the fastest price growth, such as Cleveland (+15%), where the median sales price of $229,900 is nearly $200,000 below the national average. Home prices are rising almost as fast in Milwaukee (+14.5%) and Philadelphia (+14%), with median sales prices of $320,000 and $285,000, respectively.

“Affordable housing is becoming harder to come by; even places where prices fell last year, like Texas and Florida, are now seeing some recovery,” said Elijah de la Campa, senior economist at Redfin. “

While housing affordability improved slightly last year, it remains near all-time lows due to a combination of the following factors: Mortgage rates rising and Limited stock.

Redfin data shows that home prices rose in all 50 U.S. cities in December.

Home prices continue to lag in Florida and Texas, where an influx of new immigrants during the pandemic has sent prices soaring, driving away many would-be buyers and encouraging new construction. The five cities with the slowest price growth were all in those two states, with Tampa having the smallest increase of 0.5%.

Seller’s market keeps prices high

Some real estate agents have observed that the pandemic homebuying boom has reset some sellers’ expectations.

“A lot of sellers have a very specific number in mind because they saw their neighbors selling for $40,000 more than asking price during the pandemic. If they don’t get that number, they’re willing to walk away, which is a factor in keeping the price down. High,” said Bonnie Phillips, a real estate agent with Redfin Premier in Cleveland.

However, those sellers with high expectations were met with wary buyers.

“With affordability so tight, buyers feel entitled to ask for discounts, but they are often denied by sellers — even small requests,” Phillips said.