Home prices aren't falling in the biggest metro areas for the first time in 2 years, Redfin says
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- Home prices are the most buoyant they've been in two years, according to Redfin.
- Housing prices in the top 50 US cities have climbed higher or been flat for the first time since 2022.
- That speaks to demand continuing to outpace housing supply, Redfin said.
Home prices have stopped falling in America's biggest metropolitan areas for the first time in two years, according to Redfin.
Home prices rose or stayed flat in 50 of the most populated US metro areas in April, the real estate listings site said in a report this week. That's the first time that's happened in all 50 cities since July 2022, when mortgage rates and home prices were shooting up in tandem as buyers scrambled to get into the market.
The largest increase occurred in Anaheim, California, where prices jumped 20% year-over-year in April. Prices rose 15% in Detroit, and 14% in San Jose, California, the firm added.
High borrowing costs and scarce inventory have continued to keep housing costs buoyant. The 30-year fixed mortgage rate just rose for a fifth week straight, notching 7.22% as of Friday, according to Freddie Mac data. Yet demand has remained pretty strong. Redfin's Homebuyer Demand index, a gauge of touring activity and other services using Redfin agents, rose 3% the last month, the firm said.
Supply, meanwhile, hasn't improved much. While new listings have surged 15% compared to last year's levels, inventory remains "well below" typical levels in April, Redfin noted.
The four-week moving average median sales price of a home clocked in at $383,188, Redfin estimated — less than $100 away from its all-time high.
Real estate experts have warned housing costs could remain high for the near-future, as interest rates don't look poised to come down anytime soon. The Fed has said it needs more confidence inflation is returning to its 2% price target before it mulls rate cuts — which means borrowing costs in the economy will likely remain elevated for the time being.
"Even though housing costs shouldn't climb much more, they will remain elevated for the foreseeable future, which could push more buyers away," Chen Zhao, Redfin's economic research lead said in a statement. "But for serious house hunters who can afford today's mortgage rates and find a home they love, jumping on it now isn't a bad idea, given the fact that inventory is low and costs aren't dropping anytime soon."