Throughout much of this year, existing home sales have remained sluggish due to low inventory levels and reduced buyer interest in major markets. In June, total existing home sales decreased month-over-month by 5.4% and decreased year-over-year by 5.4%, according to the National Association of Realtors (NAR). So how is this impacting home prices across the country? Despite the lack of urgency among buyers, many cities have already seen significant home price growth this year.
To find out where home prices are increasing and decreasing the most in 2024, Zoocasa analyzed median price data for single-family homes and condos using data from the National Association of Realtors and calculated the percentage change from Q4 2023 to Q1 2024.
Single-Family Home Prices Rising the Most in the South and Midwest
From the end of 2023 to the beginning of 2024, 46.4% of housing markets experienced an increase in the median single-family home price. Most home price gains were concentrated in the South and Midwest, with 17 out of the 20 markets experiencing the highest quarter-over-quarter growth in single-family home prices in these regions. Sebastian-Vero Beach, FL experienced the largest quarter-over-quarter price increase at 13.19%, followed by Naples-Immokalee-Marco Island, FL at 12.58%, and Jackson, MS at 12.07%.
As home prices continue to rise, many first-time buyers may be pushed out of the market. Fortunately, some of the markets experiencing price growth still offer relatively affordable options. For example, Joplin, MO saw an 11.25% increase, bringing the median price to $201,700, while Beaumont-Port Arthur, TX experienced a 10.68% increase, with a median single-family home price of $220,700.
The only three markets outside of the South and the Midwest that made it to the top 20 are all in California: San Diego-Carlsbad (5.3%), San Jose-Sunnyvale-Santa Clara (5.12%), and Anaheim-Santa Ana-Irvine (5.04%). These represent some of the most expensive housing markets in the US with median single-family home prices near or exceeding $1,000,000. For first-time home buyers on the East Coast looking for affordable options that still offer equity-building potential, Fresno, CA, and Bakersfield, CA, are worth considering. Both cities have seen price growth and maintain median single-family home prices below $420,000.
Potential Deals as Prices Drop in the Northeast
From Q4 2023 to Q1 2024, most housing markets in the Northeast saw single-family home prices decline. Only 10 cities in the region experienced price growth during this period, with many seeing increases of less than 1%, including Baltimore-Columbia-Towson, New York-Jersey City-White Plains, and Providence-Warwick. Manchester-Nashua, NH, stood out with the highest quarter-over-quarter growth in single-family home prices in the Northeast at 4.44%.
Single-family home prices dropped quarter-over-quarter in 31 cities in the Northeast, most notably in New York. Eight markets in New York experienced a quarter-over-quarter drop in the single-family home price, with Glens Falls, Syracuse, and Albany-Schenectady-Troy prices falling the most at 15.16%, 10.73%, and 8.46% respectively. These markets all have median single-family home prices under $300,000, with Syracuse the lowest at $198,800, providing affordable housing options for first-time buyers.
However, price declines were not limited to New York. Pittsfield, MA experienced a 14.26% drop in its median single-family home price, now at $300,000, and single-family home prices dropped significantly in Trenton, NJ as well, decreasing by 9.36% to $380,400. The last time Trenton’s median single-family home price was below $400,000 was in Q1 2023.
Sun Belt Regions See Significant Condo Price Rises
Compared to single-family home price gains, condo price increases were more subdued. Only one market, Bismarck, ND, experienced a quarter-over-quarter median condo price increase of more than 10%. The majority of condo markets that did experience price gains experienced a quarter-over-quarter price increase of under 5%, while 32 markets experienced a price drop.
Outside of Bismarck, only four other markets experienced a quarter-over-quarter median condo price increase of more than 5%: Tucson, AZ (6.41%), Phoenix-Mesa-Scottsdale, AZ (5.96%), Chicago-Naperville-Elgin, IL-IN-WI (5.59%), and Palm Bay-Melbourne-Titusville, FL (5.26%). With the Sun Belt leading in condo price growth, this could be a result of migration shifts and population growth. A recent Zoocasa report analyzing 109 cities found that 68% of those with population growth from July 2022 to July 2023 also saw home price increases, particularly in Florida, North Carolina, and South Carolina.
The condo markets that experienced the largest quarter-over-quarter decrease in price were Richmond, VA (-13.23%), Albuquerque, NM (-12.29%), and Barnstable Town, MA (-11.94%).
The 20 Real Estate Markets with Rising Single-Family and Condo Prices
In 20 real estate markets experiencing both single-family and condo price growth, condo price increases outpaced single-family home prices in most cases. For example, in Austin-Round Rock, TX, and New York-Jersey City-White Plains, NY, minimal single-family home price growth contrasts with rising condo prices, indicating growing condo demand and potentially better value for buyers.
Conversely, cities like San Diego-Carlsbad, CA, and New Orleans-Metairie, LA, show strong single-family home price growth but modest condo increases, suggesting varying demand levels and regional preferences between property types.
If you’re considering buying or selling and want to learn more about prices and sales activity in your local market, our qualified agents are here to help you! Give us a call today to learn more.
