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Key Takeaways
- According to Redfin, home prices are increasing the fastest in the Midwest. Milwaukee, Detroit, Cleveland, and other U.S. metros are near the top in terms of median price increases for homes sold.
- Home prices in Texas, Florida and other states have been the most affected by the increase in supply.
- Median home prices in America rose 3% over the past year, but pending sales saw the biggest decline since September 2023.
According to new data, the Midwest is the most affordable region for homebuyers in the U.S. However, it’s the region where home values are rising the fastest.
Milwaukee was the top metro area for median home sale price increases in February. The jump from $330,000 to $400,000 was 20%. Detroit, Nassau County, N.Y., San Jose, Calif., and Cleveland rounded off the top five according to data released by Redfin a residential real-estate brokerage and mortgage originator.
Redfin reported that the median home-sale prices nationwide rose just over 3% in February, to about $425,000. This was the slowest growth for six months. U.S. home sales pending fell by over 6% in the past year, the largest drop since September 2023.
In many places, there aren’t nearly enough homes to meet the demand. This is contributing to higher prices. Despite the slow start of home sales in 2025 in the U.S., economists are optimistic they will pick-up this spring when buyers return to the marketplace.
According to Redfin, the median home value in Austin, Texas dropped by almost 3% over the past year, the largest decline among the 50 largest metros. Tampa, Fla. San Antonio and Houston, Atlanta and Jacksonville, Fla. were the top decliners. Redfin says that in Texas and Florida a greater supply of homes gives buyers an advantage.
The average U.S. house that was under contract in February stayed on the market for 54 consecutive days. This is an increase of six days compared to a year before, and marks the longest selling period in February since 2020.
