The spring real estate market is in full swing and homes are going up for sale – but they’re staying there for longer in a handful of US cities.
In a smattering of metro cold spots – dotted throughout Texas, Florida, Louisiana, New York and West Virginia – homes are staying on the market for an average of more than 60 days, according to new data from Realtor.com.
Across the board, homes spent a median of 50 days on the market in March.
‘Some of these markets are perennially slow-moving,’ said Danielle Hale, chief economist at Realtor.com. ‘They tend to be smaller markets that are not on the radar of most buyers.’
In all of the areas where homes were spending longer on the market, there was also a notable increase in inventory year-on-year, according to data for March.
Huntington in West Virginia had among the coolest property markets in March, with homes remaining up for sale for an average of 66 days
Housing inventory surged by 130 percent in Punta Gorda, Florida. And in Cape Coral and Naples, both also in Florida, inventory was up 101 and 82 percent, respectively.
The areas with stagnating markets also often offer more affordable options, with nine out of the twelve metros boasting median list prices below the national average of $424,900.
For example, the most budget-friendly among them, Huntington, West Virginia, has a median list price of just $179,950.
Interestingly, eight of the twelve metro areas are located along the Gulf of Mexico, making them prone to storm-related risks. Some are still dealing with the aftermath of hurricanes and soaring interest costs as a result.
‘In some cases, homes in these areas are at risk of flooding and other hazards, leading to rising insurance costs,’ said Hale.
According to real estate agent Karen Brown of Michael Saunders & Company on the Florida Gulf Coast, Punta Gorda is suffering in the wake of Hurricane Ian in 2022.
‘Cleanup efforts are ongoing, and residents are still navigating insurance claims,’ Brown told Realtor.com.
1. Lafayette, Louisiana
Median days on the market in March: 69 (tie)
Median home list price in March: $259,250
In Lafayette, Louisiana, homes were on the market for a median of 69 days
2. Punta Gorda, Florida
Median days on the market: 69 (tie)
Median home list price: $419,000
3. Brownsville, Texas
Median days on the market: 68 (tie)
Median home list price: $308,000
In Brownsville, at the southernmost tip of Texas, on the northern bank of the Rio Grande, homes were on the market for a median of 68 days
4. Utica, New York
Median days on the market: 68 (tie)
Median home list price: $239,900
5. New Orleans, Louisiana
Median days on the market: 67
Median home list price: $329,000
6. Crestview, Florida
Median days on the market: 66 (tie)
Median home list price: $644,000
7. Huntington, West Virginia
Median days on the market: 66 (tie)
Median home list price: $179,950
In Huntington, West Virginia, homes were on the market for a median of 66 days
8. Waco, Texas
Median days on the market: 66 (tie)
Median home list price: $345,000
9. Longview, Texas
Median days on the market: 64 (tie)
Median home list price: $305,500
10. Naples, Florida
Median days on the market: 64 (tie)
Median home list price: $849,000
In Naples, Florida, homes were on the market for a median of 64 days. The median house price was significantly higher than elsewhere on the list
11. Cape Coral, Florida
Median days on the market: 64 (tie)
Median home list price: $474,100
12. Baton Rouge, Louisiana
Median days on the market: 64 (tie)
Median home list price: $305,000
In Baton Rouge, Louisiana, homes were on the market for a median of 64 days
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.