There may not have been any time since World War II when home prices have risen as fast as in the last two years. According to the carefully followed S&P CoreLogic Case-Shiller Indices, in January, home prices rose 19.2% nationwide compared to the same month last year.
Among the reasons for the January rise in home prices were people racing to get low mortgage rates as interest rates have begun to rise. Another factor was a sharp drop in the number of homes available for sale. And the city that has run out of homes for sale is Denver.
The surge in home prices in the past two years has been triggered by several factors. Among them is that many people have relocated from expensive coastal cities where home prices can be double the national average or more to cheaper inland cities that offer lower cost of living overall and what some may consider a better quality of life. In addition, many people who have been able to work from home because of the pandemic became more mobile.
Up until recently, another major driver was historically low mortgage rates. They dropped below 3% for a 30 year fixed rate loan and stayed at that level for months. In the new interest rate environment, the rate has moved toward 5%, cutting home buyer purchasing power. (For historical perspective, this is the mortgage rate in America every year since 1972.)
Experts often look at two factors to measure changes in the real estate market by metro. One is how fast home prices are rising and the other is the number of homes in inventory, which is essentially the number of homes for sale at any point in time.
Realtor.com has just released its March Housing Report. Among the findings is that the median price of a home for sale in the U.S. rose above $400,000 for the first time in history, hitting $405,000. Buyers could get some relief in future months. Danielle Hale, chief economist for Realtor.com suggested that inventory declines may slow, perhaps opening up supply and moderating prices.
For now, however, prices of listed homes rose 13.5% compared to last year to a median price of $405,000. And the median days a home was on the market remained very low. In several of the 50 largest metros, the number was below 25 days. To determine the markets where homes sell the fastest, 24/7 Wall St. reviewed Realtor.com’s report.
The metro where homes were on the market for the fewest days in March was Denver, at an extraordinarily low nine days. This was down by seven days compared to the same month last year. Not surprisingly, prices in the city also surged. They rose 18.8% year over year to $663,000, which makes Denver among the most expensive markets in America. (Find out if Denver is among America’s 50 best cities to live.)
Click here this city as run out of homes for sale.
Source: Sean Pavone / iStock via Getty Images
50. Pittsburgh, PA
> Median days on market: 61
> Change in median days YoY: No change
> Median price, March 2022: $223,000
> Change in median price YoY: -13.7%
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Source: TomasSereda / iStock via Getty Images
49. Buffalo-Cheektowaga-Niagara Falls, NY
> Median days on market: 49
> Change in median days YoY: 2
> Median price, March 2022: $225,000
> Change in median price YoY: -7.2%
Source: TriggerPhoto / iStock via Getty Images
48. Kansas City, MO-KS
> Median days on market: 48
> Change in median days YoY: -3
> Median price, March 2022: $390,000
> Change in median price YoY: 11.4%
Source: GCShutter / E+ via Getty Images
47. New York-Newark-Jersey City, NY-NJ-PA
> Median days on market: 47
> Change in median days YoY: -13
> Median price, March 2022: $699,000
> Change in median price YoY: 7.8%
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Source: Kruck20 / iStock via Getty Images
46. New Orleans-Metairie, LA
> Median days on market: 46
> Change in median days YoY: -8
> Median price, March 2022: $350,000
> Change in median price YoY: 3.0%
Source: Sean Pavone / iStock via Getty Images
45. Cincinnati, OH-KY-IN
> Median days on market: 46
> Change in median days YoY: -2
> Median price, March 2022: $329,000
> Change in median price YoY: -2.5%
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Source: f11photo / iStock via Getty Images
44. St. Louis, MO-IL
> Median days on market: 45
> Change in median days YoY: -15
> Median price, March 2022: $275,000
> Change in median price YoY: 6.0%
Source: Sean Pavone / iStock via Getty Images
43. Cleveland-Elyria, OH
> Median days on market: 45
> Change in median days YoY: -3
> Median price, March 2022: $190,000
> Change in median price YoY: -8.5%
Source: espiegle / iStock via Getty Images
42. Miami-Fort Lauderdale-West Palm Beach, FL
> Median days on market: 43
> Change in median days YoY: -33
> Median price, March 2022: $547,000
> Change in median price YoY: 37.0%
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41. Milwaukee-Waukesha-West Allis, WI
> Median days on market: 40
> Change in median days YoY: -6
> Median price, March 2022: $295,000
> Change in median price YoY: -2.5%
Source: Sean Pavone / iStock via Getty Images
40. San Antonio-New Braunfels, TX
> Median days on market: 39
> Change in median days YoY: -9
> Median price, March 2022: $357,000
> Change in median price YoY: 15.4%
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Source: Sean Pavone / iStock via Getty Images
39. Oklahoma City, OK
> Median days on market: 39
> Change in median days YoY: -8
> Median price, March 2022: $345,000
> Change in median price YoY: 18.9%
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Source: benedek / iStock via Getty Images
38. Memphis, TN-MS-AR
> Median days on market: 39
> Change in median days YoY: -10
> Median price, March 2022: $227,000
> Change in median price YoY: -4.6%
Source: Sean Pavone / iStock via Getty Images
37. Houston-The Woodlands-Sugar Land, TX
> Median days on market: 39
> Change in median days YoY: -12
> Median price, March 2022: $374,000
> Change in median price YoY: 9.5%
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Source: tupungato / iStock Editorial via Getty Images
36. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
> Median days on market: 38
> Change in median days YoY: -10
> Median price, March 2022: $315,000
> Change in median price YoY: -3.1%
Source: SeanPavonePhoto / iStock via Getty Images
35. Jacksonville, FL
> Median days on market: 38
> Change in median days YoY: -6
> Median price, March 2022: $406,000
> Change in median price YoY: 21.5%
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Source: Sean Pavone / iStock via Getty Images
34. Indianapolis-Carmel-Anderson, IN
> Median days on market: 37
> Change in median days YoY: -9
> Median price, March 2022: $299,000
> Change in median price YoY: 10.0%
Source: Sean Pavone / iStock via Getty Images
33. Birmingham-Hoover, AL
> Median days on market: 37
> Change in median days YoY: -9
> Median price, March 2022: $259,000
> Change in median price YoY: -2.2%
Source: Gian Lorenzo Ferretti Photography / E+ via Getty Images
32. Chicago-Naperville-Elgin, IL-IN-WI
> Median days on market: 35
> Change in median days YoY: -8
> Median price, March 2022: $337,000
> Change in median price YoY: -3.7%
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Source: Sean Pavone / iStock via Getty Images
31. Richmond, VA
> Median days on market: 34
> Change in median days YoY: -11
> Median price, March 2022: $360,000
> Change in median price YoY: -3.4%
Source: SeanPavonePhoto / iStock via Getty Images
30. Providence-Warwick, RI-MA
> Median days on market: 34
> Change in median days YoY: -9
> Median price, March 2022: $437,000
> Change in median price YoY: 9.3%
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Source: SeanPavonePhoto / iStock via Getty Images
29. Hartford-West Hartford-East Hartford, CT
> Median days on market: 33
> Change in median days YoY: -6
> Median price, March 2022: $355,000
> Change in median price YoY: 18.2%
Source: Kruck20 / iStock via Getty Images
28. Baltimore-Columbia-Towson, MD
> Median days on market: 33
> Change in median days YoY: -5
> Median price, March 2022: $325,000
> Change in median price YoY: 0.0%
Source: Kruck20 / iStock via Getty Images
27. Atlanta-Sandy Springs-Roswell, GA
> Median days on market: 33
> Change in median days YoY: -5
> Median price, March 2022: $399,000
> Change in median price YoY: 8.9%
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Source: SeanPavonePhoto / iStock via Getty Images
26. Tampa-St. Petersburg-Clearwater, FL
> Median days on market: 32
> Change in median days YoY: -8
> Median price, March 2022: $399,000
> Change in median price YoY: 32.0%
Source: Javier_Art_Photography / iStock via Getty Images
25. Orlando-Kissimmee-Sanford, FL
> Median days on market: 32
> Change in median days YoY: -19
> Median price, March 2022: $413,000
> Change in median price YoY: 27.9%
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Source: Davel5957 / E+ via Getty Images
24. Minneapolis-St. Paul-Bloomington, MN-WI
> Median days on market: 32
> Change in median days YoY: -4
> Median price, March 2022: $415,000
> Change in median price YoY: 12.2%
Source: benedek / iStock via Getty Images
23. Portland-Vancouver-Hillsboro, OR-WA
> Median days on market: 30
> Change in median days YoY: -6
> Median price, March 2022: $575,000
> Change in median price YoY: 11.6%
Source: dszc / E+ via Getty Images
22. Phoenix-Mesa-Scottsdale, AZ
> Median days on market: 30
> Change in median days YoY: -2
> Median price, March 2022: $502,000
> Change in median price YoY: 19.4%
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Source: Sean Pavone / iStock via Getty Images
21. Louisville/Jefferson County, KY-IN
> Median days on market: 30
> Change in median days YoY: -4
> Median price, March 2022: $290,000
> Change in median price YoY: 9.6%
Source: pawel.gaul / E+ via Getty Images
20. Detroit-Warren-Dearborn, MI
> Median days on market: 29
> Change in median days YoY: -5
> Median price, March 2022: $229,000
> Change in median price YoY: -15.4%
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Source: Amy Sparwasser / iStock via Getty Images
19. Washington-Arlington-Alexandria, DC-VA-MD-WV
> Median days on market: 28
> Change in median days YoY: -4
> Median price, March 2022: $545,000
> Change in median price YoY: 10.1%
Source: DutcherAerials / E+ via Getty Images
18. Los Angeles-Long Beach-Anaheim, CA
> Median days on market: 28
> Change in median days YoY: -5
> Median price, March 2022: $950,000
> Change in median price YoY: -5.0%
Source: Skyhobo / E+ via Getty Images
17. Dallas-Fort Worth-Arlington, TX
> Median days on market: 28
> Change in median days YoY: -13
> Median price, March 2022: $425,000
> Change in median price YoY: 17.6%
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Source: MattGush / iStock via Getty Images
16. Riverside-San Bernardino-Ontario, CA
> Median days on market: 24
> Change in median days YoY: -1
> Median price, March 2022: $573,000
> Change in median price YoY: 14.6%
Source: roman_slavik / iStock via Getty Images
15. Seattle-Tacoma-Bellevue, WA
> Median days on market: 23
> Change in median days YoY: -8
> Median price, March 2022: $755,000
> Change in median price YoY: 16.2%
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Source: bluejayphoto / iStock via Getty Images
14. San Francisco-Oakland-Hayward, CA
> Median days on market: 23
> Change in median days YoY: -6
> Median price, March 2022: $1,044,000
> Change in median price YoY: 2.2%
Source: f11photo / iStock via Getty Images
13. San Diego-Carlsbad, CA
> Median days on market: 23
> Change in median days YoY: -7
> Median price, March 2022: $884,000
> Change in median price YoY: 10.5%
Source: Brandon Williams / iStock via Getty Images
12. SacramentoâRosevilleâArden-Arcade, CA
> Median days on market: 23
> Change in median days YoY: -5
> Median price, March 2022: $634,000
> Change in median price YoY: 15.9%
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Source: f11photo / iStock via Getty Images
11. Las Vegas-Henderson-Paradise, NV
> Median days on market: 23
> Change in median days YoY: -8
> Median price, March 2022: $480,000
> Change in median price YoY: 35.2%
Source: Orbon Alija / iStock via Getty Images
10. Boston-Cambridge-Newton, MA-NH
> Median days on market: 21
> Change in median days YoY: -4
> Median price, March 2022: $755,000
> Change in median price YoY: 10.7%
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Source: bfg1118 / iStock via Getty Images
9. Virginia Beach-Norfolk-Newport News, VA-NC
> Median days on market: 20
> Change in median days YoY: -8
> Median price, March 2022: $337,000
> Change in median price YoY: 8.7%
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Source: Kruck20 / iStock via Getty Images
8. Charlotte-Concord-Gastonia, NC-SC
> Median days on market: 20
> Change in median days YoY: -14
> Median price, March 2022: $410,000
> Change in median price YoY: 8.5%
Source: Sean Pavone / iStock via Getty Images
7. Columbus, OH
> Median days on market: 18
> Change in median days YoY: -10
> Median price, March 2022: $329,000
> Change in median price YoY: 5.7%
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Source: GerardoBrucker / iStock via Getty Images
6. San Jose-Sunnyvale-Santa Clara, CA
> Median days on market: 17
> Change in median days YoY: -9
> Median price, March 2022: $1,399,000
> Change in median price YoY: 13.5%
Source: dszc / E+ via Getty Images
5. Austin-Round Rock, TX
> Median days on market: 17
> Change in median days YoY: -18
> Median price, March 2022: $600,000
> Change in median price YoY: 30.0%
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Source: Kruck20 / iStock via Getty Images
4. Nashville-DavidsonâMurfreesboroâFranklin, TN
> Median days on market: 14
> Change in median days YoY: -9
> Median price, March 2022: $500,000
> Change in median price YoY: 25.0%
Source: Davel5957 / iStock via Getty Images
3. Rochester, NY
> Median days on market: 12
> Change in median days YoY: -10
> Median price, March 2022: $220,000
> Change in median price YoY: -17.0%
Source: Kruck20 / iStock via Getty Images
2. Raleigh, NC
> Median days on market: 11
> Change in median days YoY: -19
> Median price, March 2022: $449,000
> Change in median price YoY: 12.5%
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Source: milehightraveler / iStock via Getty Images
1. Denver-Aurora-Lakewood, CO
> Median days on market: 9
> Change in median days YoY: -7
> Median price, March 2022: $663,000
> Change in median price YoY: 18.8%
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