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Redfin Reports Home Prices Are Rising Fast in the Midwest

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Home prices in Milwaukee jumped 20% year over year in February, a bigger increase than any other major U.S. metro. Nationwide, prices rose 3%, and pending sales fell the most since 2023.

SEATTLE, March 14, 2025--(BUSINESS WIRE)--(NASDAQ: RDFN) — The Midwest is home to three of the five metro areas where home prices are rising fastest, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

In Milwaukee, the median home sale price rose a record 20% year over year in February to $330,000—the biggest jump among the 50 most populous metros. Next came Detroit (12.5%), Nassau County, NY (11.7%), San Jose, CA (11.1%) and Cleveland (10%).

Nationwide, the median home sale price climbed 3.2% to $425,421—the slowest growth in six months. That coincided with a slowdown in homebuyer demand; U.S. pending home sales fell 6.2% year over year—the biggest decline since September 2023—and fell 1.1% month over month on a seasonally-adjusted basis.

Prices are rising even though homebuying demand is falling because in much of the country, there aren’t enough homes for sale, which is prompting buyers to bid up prices. While inventory is increasing in many areas, a lot of Midwest markets continue to see declines in the number of homes for sale; three of the five metros where housing supply is falling fastest are in the Midwest.

In Detroit, active listings dropped 6.7% year over year in February—the largest decline among the top 50 metros. Next came Newark, NJ (-6.4%), Milwaukee (-3.7%), Cleveland (-3.6%) and Portland, OR (-3.1%).

Nationwide, active listings rose 10.7% year over year and 1.3% month over month on a seasonally-adjusted basis, hitting the highest level since the early days of the pandemic (June 2020). Please note that metro-level data is not seasonally adjusted.

"Today’s housing market is weird. Some homes are attracting bidding wars like it’s 2020 again, while others are sitting on the market for weeks with no action," said Desiree Bourgeois, a Redfin Premier real estate agent in Detroit. "I recently saw one house get 10 offers and sell for $50,000 over the asking price, and the buyer waived their appraisal contingency. Oftentimes, it’s move-in ready homes in desirable areas that draw competition."

Even though prices are rising in the Midwest, it remains the most affordable homebuying region in the country. Detroit has the lowest median sale price of any major metro, at $180,000. Cleveland is the second most affordable, at $217,750.

February 2025 Housing Market Highlights: United States

February 2025

Month-over-month change

Year-over-year change

Median sale price

$425,421

1.8%

3.2%

Existing home sales, seasonally adjusted annual rate

4,200,053

-1.4%

0.1%

Pending home sales, seasonally adjusted

462,931

-1.1%

-6.2%

Homes sold, seasonally adjusted

425,074

-0.7%

-2.0%

New listings, seasonally adjusted

533,631

-6.3%

-4.7%

Total homes for sale, seasonally adjusted (active listings)

1,831,602

1.3%

10.7%

Months of supply

3.5

-0.3

0.5

Median days on market

54

-2

6

Share of homes that went off market in two weeks

36.1%

6.5 ppts

-3.7 ppts

Share of homes sold above final list price

24.6%

2.1 ppts

-1.5 ppts

Average sale-to-final-list-price ratio

98.5%

0.3 ppts

-0.2 ppts

Pending sales that fell out of contract, as % of overall pending sales

13.9%

0.3 ppts

0.5 ppts

Monthly average 30-year fixed mortgage rate

6.84%

-0.12 ppts

0.06 ppts

Prices Are Falling Fastest in Texas and Florida

Prices fell in six major U.S. metros in February, and all but one of those metros are in Texas or Florida.

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