U.S metro areas see rising home prices despite overall market cooling

The housing market in the United States has experienced significant fluctuations over recent years. Mortgage rates, which hit a record low of 2.65% in January 2021, climbed to 7.79% by October 2023. Meanwhile, the median home list price reached an all-time high of $445,000 in June 2023.

As interest rates decline and housing stock increases, a cooling of home prices is anticipated. The national median list price decreased from $429,990 in August to $425,000 in September this year.

Despite this trend, some cities continue to see notable increases in list prices. According to the Realtor.com® Monthly Housing Market Trends Report, several metropolitan areas have experienced more than a 10% rise compared to last year.

Rochester, NY leads with a median list price of $282,500 and shows the largest increase since September 2023. "Classic supply and demand economics are in play with the Rochester market," says Jason Mancuso from Keller Williams in Rochester. He adds that there is "simply not enough supply to feed the demand side of the market."

Many markets with significant percentage price increases still maintain median list prices below $300,000.

While Rochester faces limited housing availability, nationally there has been a 34% growth in housing stock year over year—the highest since April 2020—potentially leading to stabilized home prices as supply meets demand.

The following are metros with substantial annual price growth:

- **Rochester, NY**: Median list price at $282,500; Price growth: 13%

- **Milwaukee, WI**: Median list price at $389,900; Price growth: 11.4%

- **Cleveland, OH**: Median list price at $262,213; Price growth: 9.3%

- **Memphis, TN**: Median list price at $336,225; Price growth: 8.5%

- **Philadelphia, PA**: Median list price at $379,450; Price growth: 8.4%

- **St. Louis, MO**: Median list price at $299,900; Price growth: 7.1%

- **Buffalo, NY**: Median list price at $277,450; Price growth: 6.8%

- **New York City**, NY: Median list price at $764,000; Price growth: 6.3%

- **Detroit**, MI: Median list price at $277,000; Price growth: 5.7%

- **Virginia Beach**, VA: Median list price at $390,000; Price growth: 2.8%