Home Prices Still Soaring in Undervalued Cities
Increases in Miami (up 36.2%) and Honolulu (up 23.5%) reflect remote work trends, but 8 cities with “top 10” price increases are ones with still-affordable housing.
NEW YORK – Some suggest that the hot housing market is slowing down as mortgage rates rise and inventories increase, but the reality is that the demand for houses still outpaces supply, according to experts. There’s a change – and overall demand may have fallen – but there are still more buyers than sellers.
There are signs, however, that home prices will begin to plateau or slow, as sellers reduce their expectations and sellers look for deals.
“There are several indicators that the national housing market is rebalancing in a more buyer-friendly direction,” says Realtor.com Chief Economist Danielle Hale, but “in these top 10 markets with the biggest price growth, we’re generally seeing signs that the rebalancing seen elsewhere has not progressed as far.”
The top 10 cities where house prices continue to rise are:
- Miami, with year-over-year price growth of 36.2% in July
- Memphis, Tennessee (32.7%)
- Omaha, Nebraska (31.3%)
- Wichita, Kansas (25.2%)
- Greensboro, North Carolina (25.1%)
- Honolulu, Hawaii (23.5%); Grand Rapids, Michigan (23.2%)
- Milwaukee, Wisconsin (23.1%)
- Tulsa, Oklahoma (22.8%)
- Harrisburg, Pennsylvania (22.3%)
“Eight of these 10 markets have median home list price well below the U.S. average,” Hale says. “The two exceptions, Miami and Honolulu, are warm-weather spots benefiting from ongoing remote work trends and the resumption of domestic and global travel.”
Source: Realtor.com (08/09/22) Pal, Meera
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