Midwest Boom: Rapid Price Increases

The Midwest is currently experiencing the most significant increases in home prices across the United States. Data from Redfin indicates that cities like Milwaukee, Detroit, and Cleveland are leading the charge, with Milwaukee witnessing a staggering surge of 20% in median home-sale prices year-over-year, reaching $330,000.

These trends indicate a growing demand for homes in this region, which is also recognized as one of the more affordable areas for potential buyers.

National Overview: Slower Growth Rates

On a national scale, the median home-sale price rose by just over 3% in February to approximately $425,000. This marks the slowest growth seen in the past six months, highlighting a cooling trend in various markets.

In contrast, pending home sales have seen a substantial reduction, declining over 6% year-over-year, the most considerable decrease since September 2023.

Factors Influencing Home Prices

An imbalance in supply and demand is driving up prices in numerous locations. Many regions are currently grappling with a lack of available homes, which continues to push prices higher. Despite a somewhat sluggish start to 2025, experts in economics and real estate remain optimistic about a revitalization in home sales as warmer weather encourages buyers to return to the market.

Declines in Price: A Texas and Florida Perspective

Conversely, cities in Texas and Florida have seen notable declines in home prices. For instance, Austin has experienced a nearly 3% drop in median home prices—the highest decrease among the nation’s 50 most populous metropolitan areas. Other cities such as Tampa, San Antonio, Houston, Atlanta, and Jacksonville are similarly witnessing price drops.

The increased availability of homes in these states is empowering buyers, thereby leading to concessions and lower prices.

Market Activity Insights

In February, the average U.S. home was on the market for 54 days before going under contract, an increase of six days compared to the previous year. This trend marks the longest span for February sales since 2020, indicating a shift in market dynamics.