National home prices rose by 2.6% year-over-year, with varied performance across U.S. regions. While Gulf markets experience inventory surges and price declines, areas in the Northeast, Midwest, and parts of the West Coast are seeing substantial price gains. Sunbelt markets face affordability challenges and a high inventory of new homes needing discounting. Conversely, Northeast and Midwest regions remain tight on inventory, favoring sellers. The stability of these dynamics suggests that sellers could dominate the market into 2025 unless sudden economic changes occur.
Among the 200 largest metro area housing markets, the chart below highlights the 30 markets with the largest home price increases between December 2023 and December 2024, according to ResiClub's analysis.
Many pandemic boomtowns in the Sunbelt are experiencing greater affordability strain as well as facing significant home insurance shocks and higher levels of new-home inventory.
In contrast, many Northeast and Midwest markets were less reliant on pandemic migration and have less new-home construction in progress, keeping the advantage in the hands of home sellers.
Excluding a few acute economic and monetary shocks over the decades, local housing dynamics usually shift slowly-meaning, unless those markets cool off quickly and see active inventory spike, home sellers in those pockets will likely retain their iron grip on their local housing markets in spring 2025.
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