- US home prices are now down only 0.9% from this time last year, Redfin reports.
- The housing market continues its momentum, with home prices up every month since February.
- Providence, Milwaukee, Miami, Fort Lauderdale, and Cincinnati saw the biggest gains.
The US housing market is red hot again.
After falling 5% between June 2022 and January 2023, home price are now down just 0.9% year-over-year, according to Redfin data published Thursday. On a month-over-month basis, home prices are also up for the fourth consecutive month.
"Home-price declines are shrinking," said Dana Anderson, a data journalist at Redfin, in the report. "The typical U.S. home is selling for roughly $383,000, only about $4,000 less (-1%) than the all-time high set last June. That's the smallest year-over-year drop in nearly four months. Additionally, this is just the second time since last August the sale-to-list price ratio has hit 100%; in other words, the average home is now selling for its asking price."
With demand for housing still relatively low amid high mortgage rates, the firm cited a declining number of listings as a factor supporting prices. Homeowners are reluctant to move and give up low-rate mortgages they locked in years ago, keeping supply low.
It remains to be seen whether or not the upswing in prices continues. Some housing experts have attributed the momentum to seasonality and say it will fade. Others warn an impending recession will further hinder demand, sinking prices. A hawkish Federal Reserve also means stubbornly high mortgage rates could continue to stifle demand.
But that's on a national basis. Under the headline numbers, certain areas of the country are driving the ongoing rally, while others are detracting from it. That's a shift from last year, when all of the cities in indexes like the S&P CoreLogic Case-Shiller 20-City Composite Home Price NSA Index, for example, were posting declines.
Below, we've listed the five cities that have seen the biggest year-over-year price growth, as well as the five cities that have seen the steepest declines, according to Redfin.
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