Redfin reports Chicago, Albany and Milwaukee housing markets outperform as U.S. faces high mortgage rates and uncertain economy SEATTLE–(BUSINESS WIRE)–(BUSINESS WIRE)–(NASDAQ: RDFN) – Housing markets in relatively affordable Midwest and East Coast metros are outperforming the rest of the nation, according to a new report from Redfin (redfin.com) Anywhere, technology-driven real estate brokerage. Lake County, IL (about 45 miles north of Chicago) outperformed any other metro in this analysis. It was followed by Albany, N.Y., and Chicago. Rounding out the top 10 is New Haven, Connecticut. Milwaukee; New Brunswick, NJ; Elgin, IL; Bridgeport, CT; Pittsburgh and El Paso, TX. Of the 10 best performing real estate markets, 9 are in the Midwest or East Coast. The typical home sold for less than the national median of $407,000 in eight of 10 markets; New Brunswick ($480,000) and Bridgeport ($590,000) were the exceptions. Sheharyar Bokhari, senior economist at Redfin, said: “Homes in places like Chicago and Milwaukee will definitely get more expensive during the pandemic’s homebuying spree, but they’re still affordable compared to the rest of the country. “They have been slow to respond to the impact of economic headwinds such as inflation and Fed rate hikes, as relatively affordable home prices make them attractive to deal-seeking homebuyers, and homes are already low enough that no Too much downside. There isn’t much volatility in these markets.” The lower home prices are, the less impact the dollar has on monthly mortgages. At today’s 6% mortgage rate, the typical monthly payment for a $310,000 home (the median selling price in Chicago) is $2,000. That’s up from the common 3% rate of about $1,600 at the start of the year — a sizable increase, but less than the $1,100 a month a typical home pays in Seattle, where the housing market is cooling faster than any other U.S. metro. Fast. On the other hand, almost all real estate markets cooling fastest are West Coast metros, which have long been expensive, or pandemic immigrants hot spot in the past two years. In places like Illinois and Upstate New York, homebuyer demand is almost as strong as it was earlier this year In Homebuyer demand and competition metrics are almost as strong as they were at the start of the year, with the housing market cooling the slowest. In Lake County, where the typical home sells for about $315,000, there were about 36% fewer homes sold in two weeks in August from a year earlier and similar to the 43% year-over-year decline in February. Median price per square foot rose 9% in August from a year earlier, down from February’s 16% annual gain, but still significant. The numbers suggest that homebuyers are in a similar position as they were earlier this year, with homes selling at a similar pace and prices remaining relatively stable. In neighboring Chicago, there were roughly 40% fewer homes sold in the two-week period in August from a year earlier, roughly the same as the year-over-year decline in February. The price cuts in August were 6% less than a year earlier, with 23% of sellers dropping prices in August, down from 29% a year earlier. This is similar to the 7% year-over-year decline in February (8% of sellers cut prices that month, down from 15% a year earlier). “There are still plenty of buyers looking for homes; many of them didn’t have a chance in last year’s competitive market but are relieved to see lower prices and less bidding wars ,” said Chicago Redfin agent Ashley Arzer. “They are still willing to buy a home despite rising interest rates because they finally have a chance to accept an offer. There are also quite a few sellers looking to put their home on the market before a potential recession.” “However, compared to last year’s A deal is more likely to fail than that,” Arzer continued. “Some sellers looking to sell their home for the same price as their neighbours in the spring may not accept a lower offer. If they have problems during inspections, buyers are more willing to walk away because of their financial commitment due to high interest rates And bigger.”
Region
Price
PPSF YoY Change
Price decrease, year-on-yearchange*)
Change in sales to listing ratio, year-over-year
Change in Housing Share
delisted after two weeks, year-on-year
2
3
4
-2.2 points.
5
6 (tie)
-2.9 points.
6 (tie)
-3.9 points.
8
9
10
-0.6 points.
11
12 (tie)
12 (tie)
1.9 points.
12 (tie)
15
-5.4 points.
16
1.2 points.
17
18
19
20
-8 points.
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Redfin Reporter Services:
Ellie Braun, 206-588- 6863
[email protected] Source: Redfin Posted on September 27, 2022
