If it looks like bargains in housing are getting harder to seek out, you’re not unsuitable. Even reasonably priced places to live got pricier at the tip of 2024.
In keeping with a report out Tuesday from Redfin, home prices in each one in all the largest 50 cities within the U.S. rose in December from a 12 months earlier. The last time the housing market experienced this much of a broad-based surge was in May 2022, when the Federal Reserve had just began to lift rates of interest from their pandemic-era lows and buyers were anxious to lock in purchases before mortgage rates rose further.
Redfin notes that a few of the biggest year-over-year jumps occurred in places that had managed to avoid the worst of the worth increases which have frustrated would-be buyers in recent times.
“Places which have long been generally known as reasonably priced places to live, like Cleveland and Milwaukee, are actually seeing double-digit price increases — and that’s after home prices skyrocketed in the course of the pandemic,” Redfin senior economist Elijah de la Campa said in a news release.
In Cleveland, for example, home prices shot up by 15% from a 12 months ago. The rise was nearly the identical in Milwaukee, where prices rose by 14.5%.
What’s more, even places that had seen price increases easing because of an influx of latest supply have reversed that momentary reprieve.
Redfin’s data finds that, as recently as April 2023, the Federal Reserve’s anti-inflation campaign of rate of interest hikes had succeeded in cooling the meteoric rise in home prices. In that month, only 19 of the highest 50 metro areas saw year-over-year home price increases. But since then, Americans have largely adjusted to the impact of upper rates of interest and continued to spend.
Home price increases also resumed because supply constraints have remained consistent. Redfin found that average home prices jumped by 6.3% between November and December 2024 alone, the biggest month-over-month increase in almost a 12 months. In a market like this, de la Campa predicted that more people waiting for home prices to come back down before making a proposal will probably be stuck waiting even longer. Many will resolve to carry off and can rent for longer because of this, he said.
There are a few reasons behind the availability crunch: Builders aren’t constructing enough latest homes to maintain up with demand, and folks who already own homes are staying put.
Redfin’s data found that while price increases are broad-based, a number of shiny spots still remain. While Cleveland claimed the dubious distinction of getting the fastest-rising home prices in December, Redfin noted that quite a few other cities had double-digit year-over-year gains as well, including Philadelphia, Miami, Chicago and Baltimore. Some suburbs of Recent York City and Detroit also notched gains of 10% or more from a 12 months ago.
Buyers on the lookout for a silver lining should head to Florida — specifically, Tampa, Orlando or Jacksonville. Yr-over-year price increases in all three cities were below 1.5%.
Or possibly take a look at Cleveland, in spite of everything. Even after its recent jump, the median sales price there continues to be a tick under $230,000, the third-lowest within the country behind Detroit and Pittsburgh.
More from Money:
Summer Could Finally Bring Some Good News for Home Buyers, Experts Say
Considering About Moving? These Are 2025’s Hottest Housing Markets
The Typical First Time Homebuyer is Now Almost 40. What Happened?