American home values have surged over the past two years. According to the carefully followed S&P Case Shiller data, nationwide prices rose over 20% year over year in March. In several cities, the figure was higher.
One reason the demand for homes has quickened was low mortgage rates, which dropped below 3% for a 30-year fixed mortgage two years ago. Those days are over, as those rates are now closer to 6%.
Another reason home prices have risen is that Americans are more mobile. The work-from-home trend has allowed people to move from where they have to live to where they want to live. This often means moving out of expensive cities like New York and San Francisco to places that are more affordable.
To determine the city where home prices are increasing the most, 24/7 Wall St. reviewed data from Realtor.com’s Monthly Housing Trends Report for May 2022. Realtor.com ranked the 50 largest metropolitan areas in the United States based on the year-over-year increase of the median home listing price from May 2021 to May 2022.
Many of the cities where home prices are increasing the most are located in the South, particularly in Florida, Tennessee and Texas.
The metro where home prices are skyrocketing the most is Miami-Fort Lauderdale-West Palm Beach, Florida. Here are the details:
- Increase in median list price: +45.9%
- Median list price, May 2022: $627,000 (10th highest)
- Median days on market: 37 days (fifth most)
- Population: 6,129,858
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