Home Prices Post Biggest Gains Since 2022

For the first time since mid-2022, home prices are increasing across each of the nation's major metros. According to real estate marketing platform Redfin, the last time this occurred was in May 2022, when surging demand brought on by the COVID-19 pandemic caused prices to rise dramatically. Last month, home prices recorded their largest increase in the past year, rising by 6.3% year-over-year to a median price of $427,670. The Cleveland metro saw the largest increase in home prices, rising by 15% year-over-year in December. This was followed by Milwaukee and Philadelphia, which both saw price increases of 14% or more.

Home prices soared during the pandemic as record-low mortgage rates fueled homebuyer demand, and then fell in 2023 when rates climbed back up to a two-decade high. In April 2023, prices only rose in just 19 metros—the lowest number since 2012. But prices have recovered over the last year as buyers have grown accustomed to elevated mortgage rates. They’re also climbing because there’s a shortage of homes for sale. Read more