Home Prices Increased in 10 U.S. Cities, Says report

Lawrence Yun, chief economist of the National Association, reports that home prices are rising in 93% of major metro areas, attributed to insufficient housing supply.

(Credit: Moneycontrol)

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.

Eduvast Desk