Remember when the average home price was around $300,000? That was just a decade ago, and in many markets prices have grown at an even faster pace to reach today’s highs.
A recent Point2Homes real estate market analysis found that prices have doubled in most of the 100 largest U.S. cities in just a few years. In fact, home prices have risen faster than ever in recent years thanks to difficult market conditions at the time.
How fast have house prices risen?
It’s no secret that inflation, limited supply and fierce competition among buyers have pushed home prices to record highs since the pandemic. In 2020, the home-buying frenzy created unprecedented demand, leading to intense bidding wars among buyers.
Then inflation began to rise in mid-2021, and the Federal Reserve subsequently kicked off a series of interest rate hikes, which indirectly sent mortgage rates soaring. Today, the national average price of a home is $424,900, according to March data from listing site Realtor.com, and the average rate on a 30-year fixed-rate loan hovers around 7%.
Supply remains limited as many potential sellers remain locked into current rates. It’s no surprise that many would-be homebuyers have been pushed out of the market by a lack of affordable options.
As many as 68 major American cities have seen prices double in less than 10 years due to these conditions. In Spokane, Washington, the median home price rose from $184,500 in 2018 to $371,000 now, according to analysts at Point2.
Median home prices have also doubled in five of Florida’s largest markets in just six to eight years. And in Arizona, prices in seven major cities are double what they were six or seven years ago.
10 Cities Where Home Prices Doubled Fastest
These are the major U.S. cities where home prices have doubled at the fastest rate, according to Point2:
- Detroit, Michigan
- Spokane, Washington
- Tampa, FL
- Miami, Florida
- Baltimore, Maryland
- Scottsdale, Arizona
- Buffalo, New York
- St. Petersburg, Florida
- Jersey City, New Jersey
- Phoenix, Arizona
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