Home Prices Increase: According to a National Association of Realtors report, home prices are rising once more after declining for the second half of 2023, with gains reported so far in 2024 by 93% of all major metro areas.
The chief economist of the National Association of Realtors, Lawrence Yun, attributes the price increase mostly to pent-up demand for homes. “Rising prices in the current market are the direct result of insufficient housing supply not meeting the full demand,” Yun says.
In April, existing single-family home prices in the United States increased 5% year over year, having dropped by 2.86% year over year in April 2023. NAR sales statistics shows that the median price of a home is currently $389,400.
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A further factor in the impressive recovery in 2024 has been the decline in 30-year fixed mortgage rates from their peak of 7.79% in November 2023 to closer to 6.6%.
Looking at metropolitan areas – which can include several cities – we see some regions jumping 20% or more year-over-year.
Home Prices Increased in these 10 U.S. Cities
Rank | Metro Area | YOY Increase |
1. | Fond du Lac, Wis. | 23.7% |
2. | Kankakee, Ill. | 22.0% |
3. | Rockford, Ill. | 20.1% |
4. | Champaign-Urbana, Ill. | 20.0% |
5. | Johnson City, Tenn. | 19.3% |
6. | Racine, Wis. | 19.0% |
7. | Newark, N.J.-Pa. | 18.8% |
8. | Bloomington, Ill. | 18.5% |
9. | New York-Jersey City-White Plains, N.Y.-N.J. | 18.4% |
10. | Cumberland, Md.-W.Va. | 18.2% |
Eight of the ten most expensive housing markets were in California, with San Jose-Sunnyvale-Santa Clara, Calif. ($1,840,000; 13.7%), Anaheim-Santa Ana-Irvine, Calif. ($1,365,000; 14.2%), and San Francisco-Oakland-Hayward, Calif. ($1,300,000; 14%) leading the way.
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“The pricey West markets are roaring back after declining home prices last year,” Yun said. Many purchasers saw price declines in that area as second chances.
Naples-Immokalee-Marco Island, Fla. ($850,000; 9.4%) and Urban Honolulu, Hawaii ($1,085,800; 5.5%) were the two non-California markets in the top 10.