The Midwest is home to three of the five metro areas where home prices are rising fastest, according to a report from Redfin.
In Milwaukee, the median home sale price rose a record 20 percent year-over-year in February to $330,000—the biggest jump among the 50 most populous metros. Next came Detroit (12.5 percent), Nassau County, N.Y. (11.7 percent), San Jose, Calif. (11.1 percent) and Cleveland (10 percent).
Nationwide, the median home sale price climbed 3.2 percent to $425,421—the slowest growth in six months. That coincided with a slowdown in homebuyer demand; U.S. pending home sales fell 6.2 percent year over year—the biggest decline since September 2023—and fell 1.1 percent month-over-month on a seasonally-adjusted basis.
Prices are rising even though homebuying demand is falling because in much of the country, there aren’t enough homes for sale, which is prompting buyers to bid up prices, according to Redfin. While inventory is increasing in many areas, a lot of Midwest markets continue to see declines in the number of homes for sale. Three of the five metros where housing supply is falling fastest are in the Midwest.
In Detroit, active listings dropped 6.7 percent year-over-year in February—the largest decline among the top 50 metros. Next came Newark, N.J. (-6.4 percent), Milwaukee (-3.7 percent), Cleveland (-3.6 percent) and Portland, Ore. (-3.1 percent).
Nationwide, active listings rose 10.7 percent year-over-year and 1.3 percent month-over-month on a seasonally-adjusted basis, hitting the highest level since the early days of the pandemic (June 2020). Metro-level data is not seasonally adjusted, according to Redfin.
“Today’s housing market is weird. Some homes are attracting bidding wars like it’s 2020 again, while others are sitting on the market for weeks with no action,” Detroit-based Redfin Premier real estate agent Desiree Bourgeois said in a release. “I recently saw one house get 10 offers and sell for $50,000 over the asking price, and the buyer waived their appraisal contingency. Oftentimes, it’s move-in ready homes in desirable areas that draw competition.”
Even though prices are rising in the Midwest, Redfin reported that it remains the most affordable homebuying region in the country. Detroit has the lowest median sale price of any major metro, at $180,000. Cleveland is the second most affordable, at $217,750.
Prices fell in six major U.S. metros in February, and all but one of those metros are in Texas or Florida.
In Austin, Texas, the median home sale price dropped 2.7 percent year-over-year to $430,000—the largest decline among the 50 most populous metros. Next came Tampa, Fla. (-1.9 percent), San Antonio (-1.7 percent), Houston (-1.5 percent), Atlanta (-1 percent) and Jacksonville, Fla. (-0.8 percent).
In many ways, Texas and Florida are the opposite of the Midwest when it comes to the housing market, Redfin reported. The supply of homes for sale is surging in many parts of Texas and Florida, giving buyers the upper hand and causing prices to fall. That’s partly because they’ve been building more homes than other states. And in Florida, unsold inventory is piling up amid rising insurance costs and HOA fees, along with intensifying natural disasters.
“There are about five times more home sellers than buyers, meaning it’s a buyer’s market,” Redfin Premier agent Connie Durnal said in a release. “That’s why I’m telling all of my sellers that it’s crucial to price their homes competitively.”
The typical U.S. home that went under contract in February was on the market for 54 days—the longest period for any February since 2020, and up six days from a year earlier.
Homes took the longest to sell in Florida and Texas. In Miami, the typical home that went under contract last month sat on the market for 94 days—more than any other major metro. Next came West Palm Beach, Fla. (92), Austin (91), Fort Lauderdale, Fla. (91) and Pittsburgh (85).
Many homebuyers are skittish due to economic uncertainty and elevated mortgage rates, which is why Redfin agents say that if sellers want to find a buyer quickly, they should make sure their home is in good condition and fairly priced. The average 30-year-fixed mortgage rate was 6.84 percent in February, down slightly from 6.96 percent a month earlier but still more than double the record low hit during the pandemic. Rates have dipped further in March, now sitting at 6.65 percent.
Homes sold quickest in West Coast tech hubs. In San Jose, the typical home that went under contract in February was on the market for 10 days—fewer than any other major metro. It was followed by Seattle (12), Oakland, Calif. (14), San Francisco (15) and Boston (24). Historically, it has been common for homes in West Coast markets to sell the fastest.
Median sale prices rose most from a year earlier in Milwaukee (20 percent), Detroit (12.5 percent) and Nassau County (11.7 percent). They fell most in Austin (-2.7 percent), Tampa (-1.9 percent) and San Antonio (-1.7 percent).
Pending sales rose most in Los Angeles (6 percent), Anaheim, Calif. (5.2 percent) and Columbus, Ohio (0.6 percent). They fell most in Miami (-16.6 percent), Minneapolis (-16.1 percent) and Philadelphia (-16.1 percent).
Home sales rose most in Portland, Ore. (7.4 percent), Los Angeles (6.2 percent) and Anaheim (3.6 percent). They fell most in Miami (-20.7 percent), Austin (-18.2 percent) and Fort Lauderdale (-17.6 percent).
New listings rose most in Oakland (24.8 percent), San Jose (22.9 percent) and Sacramento, Calif. (17 percent). They fell most in Portland (-24.9 percent), Detroit (-23.3 percent) and Kansas City, Mo. (-20.2 percent).
Active listings rose most in Oakland (37.5 percent), Denver (29.8 percent) and Anaheim (26.9 percent). They fell most in Detroit (-6.7 percent), Newark (-6.4 percent) and Milwaukee (-3.7 percent).
In San Jose, 67.6 percent of homes sold above their final list price, the highest share among the metros Redfin analyzed. Next came Oakland (59.6 percent) and San Francisco (58.4 percent). The lowest shares were in West Palm Beach (5.5 percent), Miami (7.4 percent) and Fort Lauderdale (9 percent).