Real estate market rebounds in metropolitan areas
In 89% of these areas, home prices increased in the last quarter of 2024. The median property cost stands at $410,100.
Housing for sale in Los Angeles
One of the markets that suffered most from the direct consequences of the COVID-19 pandemic was real estate. During those years, both home sales and prices plummeted, and investment virtually disappeared. But, after that negative period, the sector is rebounding little by little, although with an eye on working to avoid future collapses, such as the one already mentioned or the one suffered in 2009.
The revival of the real estate market is being seen, above all, in the prices of homes in many of the country's large metropolitan areas.
According to a report from the National Association of Realtors (NAR), in the last quarter of 2024, home prices in 89% of the major metropolitan areas (201 of the 226 analyzed) increased over the same period last year.
Home prices in 14% of the 226 metropolitan areas registered at least a double-digit increase.
Prices soar nearly 50% since 2019
In terms of price, an increase was also experienced. Specifically, the jump was 4.8%, comparing data from the fourth quarter of 2023 with that of the fourth quarter of 2024. This percentage means that the average home price in the country rose to $410,100.
Based on the figures from the beginning of the COVID-19 pandemic and 2024, home prices in metropolitan areas shot up 49.9%.
The report makes it clear who are the beneficiaries of the increase in housing prices in areas and who are the big losers.
"Record-high home prices and the accompanying housing wealth gains are definitely good news for property owners. However, renters who are looking to transition into homeownership face significant hurdles," stressed Lawrence Yun, chief economist at NAR.
Prices spiral out of control in the Northeast; in the South, they hold steady
Among different regions, there is a significant imbalance in terms of metropolitan area home price increases. In all of them, they grew; even so, there is a substantial difference between the region that experienced the largest increase with the one that recorded the smallest.
First place goes to the Northeast, where homes appreciated 10.6% in the last year, followed by the Midwest (8%) and the West (4%). In the South, they recorded a slight increase of 2.1%.
Metropolitan areas that experienced the greatest increases
- Jackson, Miss.: 28.7%.
- Peoria, Ill.: 19.6%.
- Chattanooga, Tenn.: 18.2%.
- Elmira, N.Y.: 17.6%.
- Fond du Lac, Wis.: 17.6%.
- Cleveland-Elyria, Ohio: 16.4%.
- Bismarck, N.Dakota.: 15.8%.
- Akron, Ohio: 15.5%.
- Blacksburg-Christiansburg, Va.: 15%.
- Canton-Massillon, Ohio: 14.9%.
On the other hand, these are the most expensive metropolitan areas. Nine of the 10 most expensive are in the same state: California.
- Los Angeles: $1,943,900,
- San Jose-Sunnyvale-Santa Clara, Calif.: $1,920,000.
- Anaheim-Santa Ana-Irvine, Calif.: $1,360,000
- San Francisco-Oakland-Hayward, Calif.: $1.315,600
- Urban Honolulu, Hawaii: $1,103,100.
- San Diego-Carlsbad, Calif.: $985,000.
- Salinas, Calif.: $943.900.
- Los Angeles-Long Beach-Glendale, Calif.: $939,700.
- San Luis Obispo-Paso Robles, Calif.: $927,200.
- Oxnard-Thousand Oaks-Ventura, Calif.: $920,000.
- Boulder, Colo.: $840,700.
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