The Home Prices of These 5 Counties Have Increased the Most since Last Year

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The U.S. home prices have seen the largest quarter-to-quarter increase since 2015. Potential buyers are being pushed away from an expensive housing market.

A report by real estate data company ATTOM revealed that the median value of a single-family house rose 10.2% between the first and second quarters of 2023, to $350,000. This is the largest quarterly increase since almost a decade.

The median home prices of 565 out of 574 counties examined in the report (98%) are less affordable than they were in previous quarters. This is more than twice the number of counties which were unaffordable just two years ago, before mortgage rates increased. Only 2% of the counties examined are more affordable than historic averages.

Buyers Feel the pinch

Although it’s not clear if this price increase is temporary or a sign of a longer-term surge in prices, “house hunters feel the pinch,” according to Rob Barber CEO of ATTOM.

He said that the U.S. Housing Market has changed direction after a downturn which threatened to bring about an extended period with flat or declining prices. “That has been another blow for the amount of house that the average worker in the United States can afford.”

ATTOM analyzed data from publically recorded sales deeds, and wage data from the U.S. Bureau of Labor Statistics to determine that affordability for homeowners has worsened over the past quarter. The percentage of income needed to purchase a house has risen to 33%. This is above the 28% standard debt-to-income ratio.

In 74% of the counties studied, wages have outpaced housing costs. This is a change from the trend in the same quarter of 2022 when prices were rising faster than wages.

The counties with the highest sales growth

CountyAssociated MarketMedian sales price increases YoY
St. Louis County in MissouriSt. Louis19%
Broward County, FloridaFort Lauderdale7%
Miami-Dade County, FloridaMiami7%
Fulton County in GeorgiaAtlanta6%
Palm Beach County, FloridaWest Palm Beach6%

In 91% of the counties studied, housing prices had increased. In two-thirds, they rose by at least 5%. They reached a high in almost 40% of counties.

The 47 counties that have a minimum population of 1 million people saw the largest increases in prices year over year in the South. Most counties are located in Florida. The Sunshine State has seen prices soar due to a housing shortage and a surge in population.

The Bottom Line

Although inflation and mortgage rates are stable, the U.S. economic situation is still uncertain. In July, the Federal Reserve will also likely raise interest rates. This could lead to a further rise in housing prices. Housing prices may fall if the stock markets cool down and the economy enters a recession.

In 2023, the third quarter will determine whether the housing boom will continue or if it will wane as in the same time period last year. Real estate is still a buyer’s market for now.

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