High home costs and economic uncertainty may have slowed down the real estate market in the U.S., but one region is proving resilient and attracting plenty of new homebuyers.
Real estate company Redfin just released a report on the best-performing housing markets, and many are located in the Midwest and Northeast.
However, the biggest winner is Milwaukee, Wisconsin, which, the company noted, “is holding up better than any other major U.S. housing market.” Redfin found that home sales in Milwaukee increased by 12 percent over the last year, while home prices rose by 8.2 percent, leading to multiple offers and many homes selling for above-list prices.
The Redfin analysis ranked the 50 most populous U.S. metropolitan areas based on year-over-year changes using metrics like homes sold, median sale price per square foot, median days on market, and inventory.
While the real estate market in Milwaukee has lost some intensity since the pandemic, it has not slowed as significantly as markets in the rest of the country.
“Many homeowners are hesitant to put their houses on the market because they don’t want to lose the ultra-low mortgage rate they scored during the pandemic—a trend that rings true across the country,” Redfin stated in its report.
Chicago has the second most resilient housing market at the moment. Over half of available homes in the Windy City, or 51.8 percent, went under contract within two weeks of listing, with 7.7 percent more homes sold compared to last year. Philadelphia, where the median price per square foot has gone up 2.7 percent, rounds out the top three.
Several other Midwestern hubs make appearances in the top 10, with Minneapolis at No. 4, Cincinnati at No.6, and Detroit at No. 7. While Redfin notes that prices in the top 10 housing markets have increased 5.9 percent on average over the last year, “most of these metros have prices lower than the national median.” In Milwaukee, for example, the current median sale price is $235,000, which is $208,000 below the national median.
At the bottom of the ranking is Las Vegas. Sin City has the fastest-cooling housing market in the country, with home sales down 10.2 percent, according to Redfin’s findings. While home prices remain unchanged, houses are going for roughly four percent less than their list prices, and are taking longer to sell.
Many of the slowest housing markets are in Sun Belt cities, which saw a growth in popularity during the pandemic, but are now seeing slowing markets as the number of homes for sale rises and fewer people can afford them. Sacramento and Denver also rank near the bottom.
You can see Redfin’s complete report on redfin.com.
