The median price for single-family homes in the U.S. has fallen $19,400 over the last three months of 2022, even though prices are up 4% for the year as a whole, new data shows.
While home price growth slowed, prices were still elevated in 90% of the 186 metro areas surveyed by the National Association of Realtors (NAR). Almost a fifth of these had double-digit price increases, especially in the south.
Here’s a look at the 15 hottest markets in the US right now, as measured by price growth in 2022:
Of the 15 cities where house prices have risen the most, all but two are in the South, with six in Florida. This reflects a migration trend to the South that has been occurring since 2020 and is related to a variety of factors, including affordability, increasing remote work, and the retirement of older Americans.
The metro area with the highest percentage price growth is Farmington, New Mexico, where the median price for all homes is $261,200 — well below the national median of $378,700.
The small town of fewer than 50,000 people is the only market where house prices rose more than 20% in 2022.
At the other end of the spectrum, the metro areas with the largest price declines in 2022 were San Francisco and San Jose, California, with average home growth falling by 6.1% and 5.8%, respectively.
Still, home demand remains strong even as rising mortgage costs price buyers out, says Lawrence Yun, NAR’s chief economist.
“Even with a projected fall in home sales this year, prices are expected to remain stable in the vast majority of markets due to extremely limited supply,” Yun says. “Furthermore, there are signs that buyers are returning as mortgage rates fall, even with inventories near historic lows.”
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