Major U.S. Cities Where Housing Prices Have Increased the Most

According to a recent report by CEOWORLD magazine, most major U.S. cities are experiencing an upward trend in home prices. Despite the fact that mortgage costs are currently high and discouraging potential home buyers, the housing market remains robust.

During the 12 months leading up to October 2023, the Greater Los Angeles area experienced the most significant increase in home prices, with a surge of 23.8 percent. In contrast, only a few cities saw declines, while the median home price in the 50 largest metropolitan areas increased by 5.76 percent.

San Antonio witnessed the steepest drop, with home prices falling by 2.8 percent. Cities with notable year-over-year median home price increases of 10 percent or more since October 2022 include:

1. Los Angeles: 23.8%
2. San Diego: 18.2%
3. Richmond: 15%
4. Cincinnati, Ohio: 14.6%
5. Providence, Rhode Island, and Massachusetts: 14.6%
6. Boston: 14.1%
7. Columbus, Ohio: 12.1%
8. Rochester, New York: 11.4%
9. Pittsburgh: 10.6%
10. Chicago: 10.3%
11. Indianapolis: 10%

As per CEOWORLD magazine, the prices in most cities stabilized or decreased towards the end of 2022, but have started increasing again in 2023. The surge in home prices in these areas is similar to the national scenario and is caused by a fundamental shortage of homes to meet rising demand.

California has been struggling with a housing shortage for a long time, especially in cities like Los Angeles and San Diego. As a result of this shortage, the prices of homes have seen substantial growth. Since January 2020, median home prices in Los Angeles and San Diego have risen by 38% and 48%, respectively. According to U.S. Census data, homes in these cities list for less than $416,100, the U.S. median home price.

Amidst a significant increase in 30-year fixed mortgage rates, which have more than doubled from 3.2% to approximately 7.5% since the beginning of 2022, the US housing market continues to witness a surge in homebuyers willing to pay higher prices. The reason behind this phenomenon could be that potential buyers who were holding out for lower mortgage rates are now re-entering the market, acknowledging the prospect of an interest rate environment that will remain high for a prolonged period.

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