If you’ve been paying attention to real estate over the last year, you saw home prices rise substantially…unless you lived in Springfield, Illinois, that is. That’s because home prices rose in just about every major metropolitan area in the last year. The only market where prices fell? Springfield.
According to a new report from the National Association of Realtors, home prices increased in 99% of the nation’s major metro areas between the second quarter of 2020 and the second quarter of 2021.
The report showed that house prices rose in 182 of the 183 major housing markets in the U.S. The lone holdout was Springfield.
And it’s not like house prices just inched up by a tiny bit either. In fact, 94% of the nation’s housing markets saw prices rise by more than 10% in the last year.
Beyond that, there were a dozen markets that saw prices rise by a whopping 30% or more in the last year.
According to NAR’s report, the markets that saw at least a 30% increase in house prices were: Pittsfield, Mass. (46.5%); Austin-Round Rock, Texas (45.1%); Naples-Immokalee-Marco Island, Fla. (41.9%); Boise City-Nampa, Idaho (41%); Barnstable, Mass. (37.8%); Boulder, Colo. (37.7%); Bridgeport-Stamford-Norwalk, Conn. (37.1%); Cape Coral-Fort Myers, Fla. (35.6%); Tucson, Ariz. (32.6%); New York-Jersey City-White Plains, N.Y.-N.J. (32.5%); San Francisco-Oakland-Hayward, Calif. (31.9%); and Punta Gorda, Fla. (30.8%).
Nationwide, the median sales price of single-family existing homes rose by 22.9% to $357,900 from the second quarter of 2020 to the second quarter of 2021. That’s an increase of nearly $67,000 in one year.
According to the report, all regions of the U.S. saw double-digit price increases in the last year, led by the Northeast (21.8%), followed by the South (21.0%), West (20.9%), and Midwest (17.1%).
However, NAR Chief Economist Lawrence Yun suggests that price increases of this magnitude are unlikely to repeat next year.
"Home price gains and the accompanying housing wealth accumulation have been spectacular over the past year, but are unlikely to be repeated in 2022," Yun said.
"There are signs of more supply reaching the market and some tapering of demand," Yun added. "The housing market looks to move from 'super-hot' to 'warm' with markedly slower price gains."