The most resilient housing market in the United States during the month of June was Milwaukee, where home sales surged 12% year-over-year and prices climbed 8.2%, with sellers generally receiving more than they advertised their original listings for, according to a Redfin report.
Chicago placed second on the list, driven by rising prices and sales while inventory dropped and market speed ticked up, the report said. The top 10 also included Philadelphia, Minneapolis, New York, Cincinnati, Detroit, Newark, Pittsburgh and Virginia Beach.
The Rust Belt is home to six of the 10 most resilient markets, as out-migration has slowed following pandemic-era demographic shifts to southern markets.
Home sales were up 6.4% in these markets year-over-year, compared with a nationwide increase of 3.8%. And home prices are up 5.9% in these metros year-over-year, compared with a nationwide increase of only 0.5%. Prices are generally lower than the national median in the top 10 markets.
“Affordability often begets home-price growth because buyers are drawn to affordable places when housing costs are elevated,” said Redfin. “That said, affordability is relative; many locals have been priced out of Rust Belt markets and would no longer consider these places affordable.”
Meanwhile, Las Vegas ranked at the bottom of the list, indicating it is the metro that is cooling the fastest in the United States. Home sales were down 10.2% year-over-year, while inventory skyrocketed by 44.8%, the largest gain among all metros Redfin analyzed. Prices in Las Vegas are unchanged from last year, but the typical home fetches roughly 4% less than its list price and it takes about 51 days to sell, 15 days slower than last year. The typical U.S. home takes 40 days to sell.
Other rapidly cooling markets include Sacramento, Denver, Fort Lauderdale, Orlando, San Diego, Miami, Seattle, Washington D.C and Oakland.
Many cooling metros are Sun Belt cities that experienced a pandemic-era increase in popularity that led to a surge in home prices and home building. These markets are now slowing as inventory rises, but fewer people can afford to buy homes there.
“This narrative is especially strong in Florida, which is also grappling with increasing natural disasters and soaring insurance and HOA costs,” said Redfin.
“Three of the 10 metros cooling fastest are in Florida, and three are in California, which faces an especially intense housing affordability crisis.”
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