US Real Estate Market: Northeast and Midwest Regions Remain Hotspots for Price Growth

Explore the continued surge in price growth and buyer activity in the Northeast and Midwest markets, amidst a national slowdown due to increasing supply.

A recent pair of reports on home price growth and buyer activity have shed light on the current state of the US real estate market, particularly in the Northeast and Midwest regions. The findings from CoreLogic and Realtor.com indicate that while home prices are still on the rise, the rate of growth is beginning to slow down.

According to CoreLogic, the national average for single-family home prices increased by 5.5% between February 2023 and February 2024. However, as housing supply becomes more abundant, the pace of growth is expected to decrease to 3.1% over the next year. The Northeast region led the way in price growth, with states like New Jersey, Rhode Island, Maine, and Connecticut all experiencing double-digit increases. South Dakota topped the list with a 13.8% annual growth rate.

On a metro level, cities like Miami, San Diego, and Chicago saw the highest price growth over the past year. However, some markets in Florida, such as Melbourne, Daytona Beach, and Sarasota, were identified as being at risk of price drops. Additionally, cities like Denver, Houston, Las Vegas, and Phoenix were deemed to be "overvalued" by CoreLogic.

Meanwhile, Realtor.com's report focused on the cities with the most buyer interest, based on listing views and the number of days listings were active. Interestingly, all of the top 20 "hottest" housing markets were located in the Northeast or Midwest, with Ohio being the most represented state on the list.

Industry professionals and market watchers have been keeping a close eye on the US’s Midwest and Northeast regions, as they have consistently been identified as some of the US hottest housing markets. Supply and affordability are cited as key factors driving increased buyer interest in these areas.

While the rate of price growth in these hot markets continues to outpace the national average, there are signs that the market may be starting to balance out. Demand is beginning to taper off, which could lead to more moderate price growth in the future.

The US real estate market in the Northeast and Midwest regions continues to show strength, with home prices on the rise but growth rates beginning to slow down. Industry experts are optimistic about the future of these markets, as supply and affordability remain key drivers of buyer interest.