{"id":825833,"date":"2025-03-14T08:03:50","date_gmt":"2025-03-14T12:03:50","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-home-prices-are-rising-fast-in-the-midwest\/"},"modified":"2025-03-14T08:03:50","modified_gmt":"2025-03-14T12:03:50","slug":"redfin-reports-home-prices-are-rising-fast-in-the-midwest","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-home-prices-are-rising-fast-in-the-midwest\/","title":{"rendered":"Redfin Reports Home Prices Are Rising Fast in the Midwest"},"content":{"rendered":"

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Redfin Reports Home Prices Are Rising Fast in the Midwest<\/b><\/p>\n

Home prices in Milwaukee jumped 20% year over year in February, a bigger increase than any other major U.S. metro. Nationwide, prices rose 3%, and pending sales fell the most since 2023.<\/i><\/p>\n

SEATTLE–(BUSINESS WIRE<\/a>)–
\n(NASDAQ: RDFN) \u2014 The Midwest is home to three of the five metro areas where home prices are rising fastest, according to a new report<\/a> from Redfin (redfin.com<\/a>), the technology-powered real estate brokerage.\n<\/p>\n

\nIn Milwaukee<\/a>, the median home sale price rose a record 20% year over year in February to $330,000\u2014the biggest jump among the 50 most populous metros. Next came Detroit<\/a> (12.5%), Nassau County, NY<\/a> (11.7%), San Jose, CA<\/a> (11.1%) and Cleveland<\/a> (10%).\n<\/p>\n

\nNationwide, the median home sale price climbed 3.2% to $425,421\u2014the slowest growth in six months. That coincided with a slowdown in homebuyer demand; U.S. pending home sales fell 6.2% year over year\u2014the biggest decline since September 2023\u2014and fell 1.1% month over month on a seasonally-adjusted basis.\n<\/p>\n

\nPrices are rising even though homebuying demand is falling because in much of the country, there aren\u2019t enough homes for sale, which is prompting buyers to bid up prices. 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.\n<\/p>\n

\nIn Detroit, active listings dropped 6.7% year over year in February\u2014the largest decline among the top 50 metros. Next came Newark, NJ (-6.4%), Milwaukee (-3.7%), Cleveland (-3.6%) and Portland, OR (-3.1%).\n<\/p>\n

\nNationwide, active listings rose 10.7% year over year and 1.3% month over month on a seasonally-adjusted basis, hitting the highest level since the early days of the pandemic (June 2020). Please note that metro-level data is not seasonally adjusted.\n<\/p>\n

\n\u201cToday\u2019s housing market is weird. Some homes are attracting bidding wars like it\u2019s 2020 again, while others are sitting on the market for weeks with no action,\u201d said Desiree Bourgeois<\/a>, a Redfin Premier<\/a> real estate agent in Detroit. \u201cI 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\u2019s move-in ready homes in desirable areas that draw competition.\u201d\n<\/p>\n

\nEven though prices are rising in the Midwest, 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.\n<\/p>\n

February 2025 Housing Market Highlights: United States<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n\n

February 2025<\/b><\/p>\n<\/td>\n

\n

Month-over-month change<\/b><\/p>\n<\/td>\n

\n

Year-over-year change<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Median sale price<\/b><\/p>\n<\/td>\n

\n

\n$425,421\n<\/p>\n<\/td>\n

\n

\n1.8%\n<\/p>\n<\/td>\n

\n

\n3.2%\n<\/p>\n<\/td>\n<\/tr>\n

\n

Existing home sales, seasonally adjusted annual rate<\/b><\/p>\n<\/td>\n

\n

\n4,200,053\n<\/p>\n<\/td>\n

\n

\n-1.4%\n<\/p>\n<\/td>\n

\n

\n0.1%\n<\/p>\n<\/td>\n<\/tr>\n

\n

Pending home sales, seasonally adjusted<\/b><\/p>\n<\/td>\n

\n

\n462,931\n<\/p>\n<\/td>\n

\n

\n-1.1%\n<\/p>\n<\/td>\n

\n

\n-6.2%\n<\/p>\n<\/td>\n<\/tr>\n

\n

Homes sold, seasonally adjusted<\/b><\/p>\n<\/td>\n

\n

\n425,074\n<\/p>\n<\/td>\n

\n

\n-0.7%\n<\/p>\n<\/td>\n

\n

\n-2.0%\n<\/p>\n<\/td>\n<\/tr>\n

\n

New listings, seasonally adjusted<\/b><\/p>\n<\/td>\n

\n

\n533,631\n<\/p>\n<\/td>\n

\n

\n-6.3%\n<\/p>\n<\/td>\n

\n

\n-4.7%\n<\/p>\n<\/td>\n<\/tr>\n

\n

Total homes for sale, seasonally adjusted (active listings)<\/b><\/p>\n<\/td>\n

\n

\n1,831,602\n<\/p>\n<\/td>\n

\n

\n1.3%\n<\/p>\n<\/td>\n

\n

\n10.7%\n<\/p>\n<\/td>\n<\/tr>\n

\n

Months of supply<\/b><\/p>\n<\/td>\n

\n

\n3.5\n<\/p>\n<\/td>\n

\n

\n-0.3\n<\/p>\n<\/td>\n

\n

\n0.5\n<\/p>\n<\/td>\n<\/tr>\n

\n

Median days on market<\/b><\/p>\n<\/td>\n

\n

\n54\n<\/p>\n<\/td>\n

\n

\n-2\n<\/p>\n<\/td>\n

\n

\n6\n<\/p>\n<\/td>\n<\/tr>\n

\n

Share of homes that went off market in two weeks<\/b><\/p>\n<\/td>\n

\n

\n36.1%\n<\/p>\n<\/td>\n

\n

\n6.5 ppts\n<\/p>\n<\/td>\n

\n

\n-3.7 ppts\n<\/p>\n<\/td>\n<\/tr>\n

\n

Share of homes sold above final list price<\/b><\/p>\n<\/td>\n

\n

\n24.6%\n<\/p>\n<\/td>\n

\n

\n2.1 ppts\n<\/p>\n<\/td>\n

\n

\n-1.5 ppts\n<\/p>\n<\/td>\n<\/tr>\n

\n

Average sale-to-final-list-price ratio<\/b><\/p>\n<\/td>\n

\n

\n98.5%\n<\/p>\n<\/td>\n

\n

\n0.3 ppts\n<\/p>\n<\/td>\n

\n

\n-0.2 ppts\n<\/p>\n<\/td>\n<\/tr>\n

\n

Pending sales that fell out of contract, as % of overall pending sales<\/b><\/p>\n<\/td>\n

\n

\n13.9%\n<\/p>\n<\/td>\n

\n

\n0.3 ppts\n<\/p>\n<\/td>\n

\n

\n0.5 ppts\n<\/p>\n<\/td>\n<\/tr>\n

\n

Monthly average 30-year fixed mortgage rate<\/b><\/p>\n<\/td>\n

\n

\n6.84%\n<\/p>\n<\/td>\n

\n

\n-0.12 ppts\n<\/p>\n<\/td>\n

\n

\n0.06 ppts\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

Prices Are Falling Fastest in Texas and Florida<\/b><\/p>\n

\nPrices fell in six major U.S. metros in February, and all but one of those metros are in Texas or Florida.\n<\/p>\n

\nIn Austin, TX, the median home sale price dropped 2.7% year over year to $430,000\u2014the largest decline among the 50 most populous metros. Next came Tampa, FL (-1.9%), San Antonio (-1.7%), Houston (-1.5%), Atlanta (-1%) and Jacksonville, FL (-0.8%).\n<\/p>\n

\nIn many ways, Texas and Florida are the opposite of the Midwest when it comes to the housing market. The supply of homes for sale is surging in many parts of Texas and Florida, giving buyers the upper hand<\/a> and causing prices to fall. That\u2019s partly because they\u2019ve been building more homes than other states. And in Florida, unsold inventory is piling up<\/a> amid skyrocketing insurance costs<\/a> and HOA fees<\/a>, along with intensifying natural disasters.\n<\/p>\n

\n\u201cThere are about five times more home sellers than buyers, meaning it\u2019s a buyer\u2019s market,\u201d said Connie Durnal<\/a>, a Redfin Premier<\/a> agent in the northern suburbs of Dallas. \u201cThat\u2019s why I\u2019m telling all of my sellers that it\u2019s crucial to price their homes competitively.\u201d\n<\/p>\n

Nationwide, Homes Are Selling at the Slowest Pace in Five Years<\/b><\/p>\n

\nThe typical U.S. home that went under contract in February was on the market for 54 days\u2014the longest period for any February since 2020, and up six days from a year earlier.\n<\/p>\n

\nHomes 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\u2014more than any other major metro. Next came West Palm Beach, FL (92), Austin (91), Fort Lauderdale, FL (91) and Pittsburgh (85).\n<\/p>\n

\nMany 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% in February, down slightly from 6.96% 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%.\n<\/p>\n

\nHomes 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\u2014fewer than any other major metro. It was followed by Seattle (12), Oakland, CA (14), San Francisco (15) and Boston (24). Historically, it has been common for homes in West Coast markets to sell the fastest.\n<\/p>\n

Metro-Level Highlights: February 2025<\/b><\/p>\n