America’s real estate market is steeped in uncertainty as soaring mortgage rates effectively freeze buyer activity.
It has left many questioning: is property still a good investment?
But a new study by GoBankingRates claims to shed light on the areas that are most likely to help owners get the best returns.
Researchers analyzed the average house price – as recorded by Zillow – in major US metros as of January 2024 and established where prices have risen quickest in the past five years.
Their findings show that Atlantic City, New Jersey, is the best place to gain value on a property. The average home in the area costs $218,761, having shot up 102 percent in price since 2019 and 16 percent in the last year alone.
A new study by GoBankingRates claims to shed light on the areas that are most likely to help owners get the best returns
It was followed by Waterbury, Connecticut, where the typical home costs $249,073, up 15 percent from last year and 100 percent from five years ago.
The top five was rounded out by Lewiston, Maine, Mercedes, Texas, and Torrington, Connecticut.
By comparison, the national average home value in the US in January 2024 was $343,951, up 50 percent from 2019 and 3 percent from last year.
New Jersey was the state to appear most prominently on the list, with nine of the 25 places ranked located in the Garden state.
It was followed by Florida and Tennessee which had four cities each on the list.
Notably no cities in New York or California made the top 25. The rankings were compiled by combining the percentage changes in each city in one year and in the last five years.
The findings come after a separate report by property portal Redfin found the US housing market had gained $2 trillion in value over the last year.
Redfin’s analysis of more than 90 million homes across the country found the total value of residential real estate had increased 5.3 percent to $47.5 trillion in December.
However, experts have repeatedly sounded the alarm over a real estate ‘correction’ which will see house values fall somewhat after ballooning during the pandemic.
Former Oppenheimer analyst Meredith Whitney – who has been dubbed the ‘Oracle of Wall Street’ after predicting the 2008 financial crash – told DailyMail.com that house prices would start to fall as Baby Boomers begin downsizing.
She said: ‘Around 90 percent of housing stock is owned by over 40s while 74 percent is by those over 50.
‘It makes logical sense that lots of these owners will start to downsize in the next decade. That’s almost 35 million homes – it’s a huge number to go through the system.
Analyst Meredith Whitney, who is known as the ‘Oracle of Wall Street’, said house prices in some states will fall this year
Mortgage rates are hovering close to 7 percent – almost double where they were two years ago
‘My advice to homeowners is: if you want to sell, you’re better off doing it sooner than later.’
The average rate on a 30-year fixed-rate home loan is now 6.94 percent, according to Government-backed lender Freddie Mac. It is almost double what they were two years ago.
In a normal market this would be enough to dampen demand for homes and thus quash prices. However, several experts have noted that a widespread property shortage in the US has kept home values artificially high.
Data from Redfin shows that the typical US homeowner now spends twice as long in their properties as they did in 2005.
Today an owner can expect to spend 11.9 years in the same property, compared to 6.5 years two decades ago.
Whitney insists that there will be no house price ‘crash’ but rather an overdue correction.
City | Average house price | % change in 1 year | % change in 5 years |
---|---|---|---|
Atlantic City, New Jersey | $218,761 | 16% | 102% |
Waterbury, Connecticut | $249,073 | 15% | 100% |
Lewiston, Maine | $274,687 | 14% | 91% |
Mercedes, Texas | $123,572 | 13% | 92% |
Torrington, Connecticut | $255,834 | 14% | 81% |
Irvington, New Jersey | $359,441 | 10% | 101% |
Elizabeth, New Jersey | $498,548 | 15% | 75% |
Knoxville, Tennessee | $341,351 | 12% | 88% |
Camden, New Jersey | $115,800 | 12% | 85% |
Trenton, New Jersey | $307,421 | 12% | 84% |
Oakridge, Tennessee | $285,447 | 11% | 92% |
East Orange, New Jersey | $425,011 | 11% | 90% |
Golden Glades, Florida | $490,839 | 11% | 86% |
Willingboro Township, New Jersey | $303,989 | 10% | 92% |
West Little River, Florida | $401,228 | 12% | 84% |
Lakewood, New Jersey | $402,932 | 13% | 75% |
Donna, Texas | $131,471 | 11% | 84% |
Wilkes-Barre, Pennsylvania | $137,986 | 10% | 87% |
Forest Park, Georgia | $177,414 | 5% | 114% |
Clinton, Tennessee | $287,509 | 11% | 82% |
Miami Gardens, Florida | $449,676 | 11% | 81% |
North Miami, Florida | $473,109 | 10% | 84% |
Linden, New Jersey | $497,627 | 13% | 71% |
Lehigh Acres, Florida | $312,991 | 9% | 90% |
Elizabethton, Tennessee | $203,565 | 12% | 74% |
The US housing market gained a huge $2 trillion over the last year, amid a historic shortage of homes for sale.
The average home rose more than $20,000 and is now valued at $495,183 as of December 2023, up from $474,740 a year earlier.
According to Redfin analysis of more than 90 million homes across the country, the total value of US residential real estate increased 5.3 percent from a year earlier to $47.5 trillion in December.
While soaring mortgage rates mean housing demand is sluggish, home values continue to rise, pricing many Americans out of the market.
In the last two years, the housing market has gained $5.6 trillion, Redfin found.
However a disparity remains across the US. While affordable East Coast and Midwest metros saw the biggest rise in home values in the last year, so-called pandemic ‘boomtowns’ have seen the largest decline.
The average home rose more than $20,000 and is now valued at $495,183 as of December 2023. The biggest rises were on the east coast of America
Scroll down for the full list of metros with the biggest price rises.
According to Redfin, there are three major reasons why home values are continuing to rise.
Many homeowners are locked into ultra-low mortgage rates from previous years, meaning they are hesitant to put their houses on the market.
With supply tighter than demand, buyers are competing for a limited pool of homes. That is propping up values for both properties that are already for sale, and those that could hit the market in the future.
The total value of US homes was nearing a trough at the end of 2022, which is part of the reason year-over-year growth at the end of 2023 was so large, it added.
It is typical for home values to cool in the winter, but they experienced an abnormally large slowdown in 2022 as the shock of surging mortgage rates sent a freeze through the housing market.
While America grapples with a housing shortage, it is also continuing to build homes, which contributed to the gain in total home values last year, Redfin said.
Home values in Newark, New Jersey, saw the biggest gain in value in the year to December 2023 – increasing by 12.8 percent to $359.6 billion.
Next come two other East Coast metros, New Haven, Connecticut, and Camden, New Jersey. Homes in New Haven gained 11.9 percent in value to $86.5 billion, while properties in Camden went up by 10.8 percent to $153 billion.
Home values in Newark, New Jersey , saw the biggest gain in value in the year to December 2023 – increasing by 12.8 percent to $359.6 billion
Fixed 30-year mortgage rates are now hovering around 6.9 percent, according to Government-backed lender Freddie Mac
Charleston, South Carolina, ranked fourth – with values increasing by 10.8 percent to $188.5 billion.
Next are three Midwestern metros, Elgin, Illinois, Grand Rapids, Michigan and Milwaukee, Wisconsin.
Places like Newark and Camden are likely seeing home values jump in part because they are attracting demand from people who are priced out of New York and can now work remotely, Redfin said.
Midwestern metros like Milwaukee and Grand Rapids are experiencing home value gains for a similar reason.
They are affordable, and when mortgage rates and home prices are elevated, demand for affordable homes goes up.
‘America’s homeowners are sitting pretty. They’re holding a massive amount of housing wealth, despite lackluster demand from buyers, because home values skyrocketed during the pandemic and now a supply shortage is preventing those values from falling,’ said Redfin economics research lead Chen Zhao.
‘Prospective buyers aren’t as lucky. The combination of elevated mortgage rates, high home prices and a limited pool of homes for sale means homeownership is about as unaffordable as ever.’
But not every homeowner has seen their property increase in value.
‘Home values skyrocketed during the pandemic and now a supply shortage is preventing those values from falling,’ said Redfin economics research lead Chen Zhao
Four metros saw declines in overall home value, according to Redfin.
Pandemic ‘boomtown’ Boise, in Idaho, saw prices decline 3.8 percent to a total of $123.9 billion and New York saw prices fall 1 percent to $2.4 trillion.
New Orleans prices went down 0.8 percent to $124 billion and homes in Stockton, California, lost 0.7 percent in value – falling to a total of $109.2 billion in value.
The metros with the smallest increases were Philadelphia, at 0.3 percent, Honolulu, at 0.8 percent, Austin, Texas, at 1 percent, Denver at 1.3 percent and Riverside, California at 1.6 percent.
Most of these metros have something in common, said Redfin, which is that they have become unaffordable for many homebuyers. This means that there is a cap on demand, so home values no longer have much, if any, room to rise.
New York, Honolulu, Riverside and Denver all have median home sale prices of at least $550,000 – well above the national median.
And in Boise and Austin, which also have median sale prices above the national level, many people are priced out because an influx of out-of-towners caused home values to skyrocket during the pandemic.
But some experts predict that there will be a shift in the housing market in some parts of the US in 2024, driven by a surge in Baby Boomers downsizing into smaller properties.
Analyst Meredith Whitney, who is known as the ‘Oracle of Wall Street’ after she correctly predicted the 2008 financial crash, said house prices in some states will fall this year.
So-called pandemic ‘boomtown’ Boise, Idaho, saw prices decline 3.8 percent to a total of $123.9 billion in December 2023 – the most of any metro
Analyst Meredith Whitney, who is known as the ‘Oracle of Wall Street’, said house prices in some states will fall this year
This, in turn, will free up inventory and bring costs down for first-time buyers.
Whitney said homes in New York, New Jersey and Ohio will see a fall in prices. By comparison, homes in Texas, Tennessee and Utah will remain strong, she said.
She told DailyMail.com: ‘Around 90 percent of housing stock is owned by over 40s while 74 percent is by those over 50.
‘It makes logical sense that lots of these owners will start to downsize in the next decade. That’s almost 35 million homes – it’s a huge number to go through the system.
‘My advice to homeowners is: if you want to sell, you’re better off doing it sooner than later.’
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House prices in Louisiana fell at the steepest rate of any US state last year, new data shows.
Between January and December 2023, the average property in the Bayou State dropped by $4,370 to $195,356.
By comparison, homes in Connecticut saw the biggest spike in values, rising by $33,293, according to Zillow data.
The findings come after a tumultuous year for America’s property market which saw housing affordability hit a 39-year low thanks to soaring mortgage rates and still-high house prices.
But fresh analysis by the New Jersey Real Estate Network shows how the picture varies drastically across the country. Researchers looked at how much the average home in each state was listed for in January 2023 and compared it with December 2023.
The New Jersey Real Estate Network looked at how much the average home in each state was listed for in January 2023 and compared it with December 2023
After Louisiana, Idaho saw the second-biggest drop in property prices, with the average home falling from $437,392 at the start of the year to $434,224 by the end. It marked a decline of $3,268, or 0.75 percent.
It was followed by Texas, North Dakota and Nevada which saw home values drop by $1,241, $895 and $448 respectively.
By comparison, the top five states to see the biggest house price increases were: Connecticut, Maine, New Hampshire, New Jersey and Rhode Island.
Maine saw prices shoot up from $356,515 to $385,019 over the course of the year – an increase of $28,504 or 8 percent.
Homes in New Hampshire increased by 7.49 percent from $416,055 to $447,215.
A spokesman for the New Jersey Real Estate Network said: ‘The spike in housing prices across certain states results from a mix of factors.
‘Economic vitality, job growth and population influx can drive demand, while supply constraints and low interest rates amplify the increase in prices.’
It comes after an unprecedented three years for the US real estate landscape.
During the pandemic house prices ballooned from $329,000 in January 2020 to $433,000 two years later, according to US census data.
Many families were embroiled in a so-called ‘race for space’ as they looked for bigger homes and gardens to spend lockdown. A widespread shift to working-from-home also unchained workers from their city center properties.
During the pandemic house prices ballooned from $329,000 in January 2020 to $433,000 two years later, according to US census data
In January 2022, the average rate on a 30-year fixed mortgage was hovering at 3.45 percent, according to government-backed lender Freddie Mac. It is around half today’s rate of 6.66 percent
But house prices have remained elevated ever since, with the median house price still hovering at $420,000 according to Realtor.com.
This is despite the fact mortgage payments have soared in response to the Federal Reserve’s aggressive campaign to hike interest rates to their current 22-year high.
In January 2022, the average rate on a 30-year fixed mortgage was hovering at 3.45 percent, according to government-backed lender Freddie Mac. It is around half today’s rate of 6.66 percent.
In real terms, it means a buyer today faces paying an extra $800 per month on their mortgage than if they had bought two years ago.
At the current rate, somebody purchasing a $400,000 home with a 5 percent downpayment faces shelling out $2,442 per month on a 30-year fixed mortgage.
But had they bought in January 2022 – when rates were hovering at around 3.45 percent – they would have paid just $1,696.
By Lillian Gissen and James Gordon For Dailymail.com
05:01 14 Jan 2024, updated 05:01 14 Jan 2024
- Extravagant 18,000-square-foot Connecticut castle which sits on 400-acres of land is being sold by Christopher Mark who came up with the idea in early 2000s
- His daughter Christina Mark started sharing clips of herself inside it on TikTok which sent the price soaring to $60 million but it is now on sale for $29 million
- Finished in 2010, the medieval-mansion has seven full bathrooms and three half bathrooms, 12 fireplaces and towers rising 126 feet into the sky
A nine-bedroom castle in Connecticut – which comes complete with its own moat, elevator, and glass tower is back on the market – but for half the price of its original sale price it was listed at just two years ago.
Set on 400 acres of land, the castle is currently owned by Christopher Mark who came up with the idea, designed the plans for it, and had it built in the early 2000s.
Located in Woodstock, about 40 miles from Hartford, the extravagant 18,000-square-foot home caught the attention of the internet in 2022 when his daughter Christina Mark started sharing clips of herself inside it and posting it to TikTok.
The castle has been on and off the market; it was previously listed for $60 million in February 2022.
The idea for the castle came about after Christina and her sister inspired their father to build the fairytale-like dwelling.
The 18,000-square-foot castle has nine bedrooms in total, as well as seven full bathrooms and three half bathrooms.
Homeowners can move between the seven floors via a hand-carved wooden spiral staircase.
Meals can be enjoyed in a medieval-style dining room. Heated radiant floors run throughout the home, not to mention there are 12 fireplaces for those craving some winter warmth.
In summer time, central air flows throughout the home including the towers, one of which is made out of glass, that rise 126 feet into the sky, according to its Zillow listing.
The castle spans across seven floors, with a large spiral staircase taking you from the top to the bottom, as well as an elevator for those who don’t feel like walking.
The property includes a 30-acre peninsula along tree-lined Potter Pond, which was dug specifically to build the castle’s moat and nearby pond.
A pair of castellated stone bridges are the only way to cross it, according to the listing.
The wood inlaid floors throughout the castle were built with over 25 species of hardwoods imported from around the world.
Throughout the lavish home, there are many unique sculptures together with stained glass windows.
The eccentric home also includes a huge jacuzzi hot tub complete with a rock waterfall, tree trunk supports in the master bathroom, as well as a massive domed observation room with a glass floor which offers views into the master bedroom 40 feet below.
The castle also features several secret passageways as well as a dungeon.
In the 4,500-square-foot basement, there’s an at-home bar, a recording studio and a fully-functional theater, with a stage, lighting and music for those living behind the castle walls to live out their dreams.
Elsewhere on the property is a maids’ apartment, which the family would use to house their in-laws. At one time there was even a petting zoo, with two camels still on property.
While the castle at might appear as though it was constructed hundreds of years ago, it was actually completed in the 21st century.
‘We bought the property in 2001, and then started building in 2003. It was mostly complete by 2010,’ Christina told Insider.
She revealed: ‘My sister and I, when we were younger, we would dress up like princesses, and he just wanted our dream to come true.
‘Our ancestors have castles in Ireland, so we wanted to keep the idea going in our generation now too.’
Chris, as well as his daughters, dress up as royalty from time to time and even have regal robes and a golden coach that Cinderella might have used.
They moved into the luxurious mansion when she was about seven or eight-years-old. And according to Christina, her dad played a hand in almost every aspect of building the castle – working with architects and incorporating his own ideas into the final structure.
A local Connecticut boat builder who specializes in wooden yacht restoration was employed to hand-carve all of the doors and moldings.
Chris also purchased a nearby iron foundry for its metal-working equipment to create wrought-iron gates, staircases and windows.
Artisans from around the world were hired to complete the castle’s construction.
During the seven-year build process, more than 100 artisans, mainly from Russia, Poland and the Czech Republic, were flown-in to help with the construction.
As for his profession, he founded his own figurine company called Mark Miniatures, which have been sold in Bergdorf Goodman and other big retail stores over the years.
He furnished the castle with many items from Europe, while other pieces were custom-made specifically for the grand home in his factory.
‘They were handcrafted in my dad’s factory in Putnam. And that’s where he made all of the parts for the castle, in his metal and wood shop,’ Christina said.
‘When we were younger, we had to open our mouth[s] really wide, so someone could carve our face into clay,’ she recalled.
‘The Woodstock Castle offers the opportunity of a lifetime to own a dream come true,’ the listing reads.
‘[It’s a] stunning one of a kind property built to amaze and capture the imagination of the individual who relishes outstanding craftsmanship and superior design.’
‘There’s a bunch of features that I love, but probably the most shocking is the glass dome at the top,’ gushed Christina.
‘Because when you’re up there, it’s all glass and you can see three floors down because there’s glass in the three floors below it, too.’
The castle has been on the market since 2014, when it was originally listed for $45 million.
Chris eventually slashed the price to $39 million, before removing it in 2016. He then put it back on sale towards the end of last year for $29 million.
Listing agent John Pizzi of Randall Realtors said Chris has plans to use money from the sale to build another castle.
John said that ‘the owner is relocating out of state and he thought he would build another castle, and in talking to architects and engineers’ he realized he would need in the ballpark of $60 million to construct another medieval-style mansion.
Christina explained that she and her sister have left home and her dad is ready to make a change.
‘We’re moving out, and he doesn’t want to just be there by himself if we’re not using it.’