House prices in these 22 cities could surge the most in the next year (2024)

House prices are set to rise an average 1.6 percent across the country over the next year, according to a new report.

Yet twenty-two cities could see even higher growth of between 3.7 percent and 6.1 percent, Zillow reports.

It comes after new analysis showed that the 2020's could be the best decade yet for the real estate market.

Home values have increased 47.1 percent in the years following the pandemic, marking a faster pace of expansion than the whole of the 1990s or 2010s.

The current decade is on track to eclipse the red-hot market of the 2000s when prices grew 47.3 percent - after peaking at 80 percent in the lead-up to the 2007 financial crisis.

Here DailyMail.com reveals where house prices are set to increase the most in the next year.

22. Clarksville, Tennessee

Home prices are expected to grow 3.7 percent in Clarksville over the next year.

The median sale price in the area is$268,967, according to Zillow.

21. Greenville, North Carolina

Homeowners in Greenville, North Carolina will also see their homes rise by an estimated 3.7 percent over the next twelve months.

The median home sale is $215,500 in the town.

20. Durham-Chapel Hill, North Carolina

North Carolina'sDurham-Chapel Hill is also expected to see its home prices rise by 3.7 percent over the course of the next year.

The market for homes here is red hot with listed properties spending only an average of twelve days on the market before a sale is pending.

The median home sale price in the area sits a $371,083.

19. Wilmington, North Carolina

Wilmington, where median home sale prices are at$411,583, is expected to see a price increase of 3.7 percent in the next year.

18. Albuquerque, New Mexico

Another property hotspot is Albuquerque, New Mexico.

Here the median sale price for a home is$322,333 and properties only sit on the market for an average of eleven days.

17. Boise City, Idaho

Boise in Idaho is slightly pricier with the median home sale going through at $448.317.

Home prices are also expected to rise an average of 3.7 percent in the state capitol in the next twelve months.

16. Yuma, Arizona

Yuma, in southwest Arizona is set to see prices rise even further, to an average of 3.8 percent higher in the next year, according to Zillow's estimates.

The median home sale price in this Colorado River town is $283,300.

15. McAllen-Edinburg-Mission, Texas

Expecting to see a substantial 3.9 percent rise in house prices in the next year isMcAllen-Edinburg-Mission in Texas.

The median home-sale price in this area of around 900,000 people is $192,867.

14. Fayetteville, North Carolina

Home prices in Fayetteville, North Carolina are also expected to rise 3.9 percent in the next twelve months.

Houses in this town, with an average sale price of $218,500 only tend to stay on the market for two weeks before a sale is pending.

13. Muncie, Indiana

Median sale prices in Muncie, Indiana stand at $137,377 and are expected to rise 3.9 percent in the next year.

Homes also only remain on the market for two weeks before they're snatched up.

12. Santa Maria-Santa Barbara, California

In a much pricier neighborhood, the median home sale in Santa Barbara goes for $852,250.

Those prices are set to rise by another 3.9 percent in the next twelve months.

Property also sits on the market for just twelve days in this seaside paradise.

11. Charlotte-Concord-Gastonia, North Carolina

In North Carolina prices in Charlotte, Concord and Gastonia are all expected to rise by four percent over the course of the next year.

The median home sale price in the area is $348,667.

10. New Haven-Milford, Connecticut

House prices in New Haven, home to world-famous Yale University, is set to see its home prices rise by 4 percent in the next twelve months.

The median sale in New Haven and nearby Milford is $307,817 but homes get snapped up in just eight days of being on the market.

9. Johnson City, Tennessee

Set to see house prices rise even further to 4.1 percent is Johnson City, Tennessee.

Here homes stay on the market for just under two weeks with a median sale price of $226,160.

8. Manchester-Nashua, New Hampshire

Also set to see home price growth of 4.1 percent in Manchester and Nashua in New Hampshire.

Properties in these towns spend just six days on the market before buyers pay a median price of $434,489 to call them home.

7. Portland-South Portland, Maine

Portland and nearby South Portland in Maine, where homes sell for a median of $475,000, is expected to see home prices rise by 4.1 percent.

The waterfront cities see homes stay on the market for just eleven days before a sale is pending.

6. Jackson, Tennessee

House prices in Jackson, Tennessee are estimated to climb even further over the course of the next year, adding another 4.2 percent to valuations.

Despite this properties, selling for a median of $183,167, take a little longer to sell sitting on the market for an average of 25 days.

5. Athens-Clarke County, Georgia

The historic southern city of Athens is set to see its home prices rise by 4.2 percent over the next year.

The median home sale in the city, known for its pre Civil War architecture, sells for $323,333 at the present.

4. Syracuse, New York

Syracuse, in northern upstate New York, is set to see house prices rise by a whopping 4.5 percent in the next twelve months.

Homes in this university city sell for a median of $193,667 after just seven days on the market.

3. Rochester, New York

Prices are set to rise a further five percent in Rochester over the course of the next year.

Homes spend just eight days on the market in this city perched on the edge of Lake Ontario.

The current median sale price is $199,975.

2. Flagstaff, Arizona

In Flagstaff, Arizona prices are set to rise 5.3 percent in the next twelve months.

The current median sale price for this mountain city is $593,833.

1. Knoxville, Tennessee

The city set to see the greatest increase in house prices in the next year is Knoxville, Tennessee.

The eastern Tennessee city is expected to see its home valuations rise by a significant 6.1 percent in that time.

The average sale price is currently $321,000.

Homes here also get bought up after just two weeks on the market.

House prices in these 22 cities could surge the most in the next year (2024)

FAQs

House prices in these 22 cities could surge the most in the next year? ›

The greater New York area also ranks high with a 18.4% gain in home prices, largely due to ever-present demand and a shortage of homes in the area. Overall, the northeast region saw a resurgence in single-family home prices, which increased 11% in the first quarter of 2024, the highest of all regions in the country.

Where are home prices rising the most? ›

The greater New York area also ranks high with a 18.4% gain in home prices, largely due to ever-present demand and a shortage of homes in the area. Overall, the northeast region saw a resurgence in single-family home prices, which increased 11% in the first quarter of 2024, the highest of all regions in the country.

Why do house prices rise faster in some cities? ›

Home prices grew faster in many small cities and rural areas compared to large cities in the last year, as buyers continue to move to the outskirts of major metropolitan areas where prices are often more affordable — a trend that's persisted since the start of the pandemic.

What time of year are house prices highest? ›

Generally speaking, late spring and summer are the peak real estate season, when there's the most inventory to choose from — but also the most competition, and the highest prices. If affordability is a concern, you're likely to score a better deal during the winter months.

What is the average increase in the price of the house per year? ›

Home prices have increased significantly in recent years. Between April 2021 and April 2022, home values nationally rose 18.8%, according to the Federal Housing Finance Agency. That is higher than historical averages. Since 1991, the average annual home price increase has been 4.3%, according to the FHFA.

What state has the most overpriced housing market? ›

Four of the top five most expensive U.S. counties by median housing price were located in California. County level data of housing statistics from the the American Community Survey shows how much homes are valued at across California.

Where are home prices doubling in the USA? ›

Where housing values grew rapidly
RankCityYears to double in price
1Detroit4.9
2Spokane, Wash.5.9
3Tampa, Fla.6
4Miami6
8 more rows
May 8, 2024

Where in the US are house prices dropping? ›

The cities with the highest chance of seeing housing price cuts, according to CoreLogic, are:
  • Palm Bay-Melbourne-Titusville, Florida.
  • Atlanta-Sandy Springs-Roswell, Georgia.
  • Spokane-Spokane Valley, Washington.
  • Deltona-Daytona Beach-Ormond Beach, Florida.
  • Greenville-Anderson-Mauldin, South Carolina.
Jun 2, 2024

How much should a house cost compared to salary? ›

Using a factor of your household income, you can quickly come up with an initial estimate for how much house you may be able to afford. For most people and families, the total house value should generally be no more than 3 to 5 times their total annual household income.

What are the main causes of the increase in housing prices? ›

Why Is Housing Expensive in California?
  • Building Less Housing Than People Demand Drives High Housing Costs.
  • High Land Costs and Low Density Development Make Housing Expensive.
  • Building Costs Increase Housing Costs.
  • Community Resistance Is Heightened.
  • CEQA Can Be Used to Delay or Reduce Building Activity.
Mar 17, 2015

Will 2024 be a better time to buy a house? ›

Mortgage rates are expected to come down in 2024, and inventory and home sales are likely to increase. Homebuyers and sellers can also expect prices to continue to rise, albeit at a slower clip than the past couple of years.

What is the cheapest month to buy a house? ›

If getting the lowest price possible is your main priority, consider searching for a home in November or December. There won't be as many houses to choose from compared to the spring and summer months, but you'll face less competition and a higher likelihood of purchasing a home below the asking price.

Should I buy a house now or wait for a recession? ›

And as you might imagine, recessions are a risky time to buy a home. If you lose your job, for example, a lender will be much less likely to approve your loan application. Even if a recession doesn't affect you directly, if your area is hard-hit, that could have a serious effect on the local real estate market.

Will inflation cause a housing crash? ›

Generally, homeowners, especially those with mortgages, benefit from inflation. The value of homes tends to increase faster than inflation, so their investment does not lose value.

How much should a house appreciate in 10 years? ›

How much will a house appreciate in 10 years? The rate of home appreciation varies greatly by location and market conditions. However, on average, homes have appreciated about 3-5% annually over the past decade.

How much will my house be worth in 5 years? ›

Based on historical averages of 3.5% of home value growth per year, property prices will rise a total of about 18 to 20% in 5 years. The math is simple: 3.5% a year for 5 years, compounding annually. The key is to do the math as compounding because your home value will continue to build.

Where US house prices may be most overvalued? ›

Most overvalued metro areas in the U.S.
Metro areaAnnual change in home pricesMedian sales price in March 2024
Memphis, Tenn.-1.3%$172,000
Buffalo-Cheektowaga-Niagara Falls, N.Y.4.5%$177,500
Indianapolis-Carmel-Anderson, Ind.6.2%$240,000
Milwaukee-Waukesha-West Allis, Wis.5.9%$185,000
1 more row
May 13, 2024

Which US city has the highest house prices? ›

Most expensive housing markets in the U.S.
  1. Manhattan, New York. Borough population: 1,596,273.
  2. Honolulu, Hawaii. City population: 343,437. ...
  3. San Jose, California. City population: 1,938,524. ...
  4. San Francisco, California. City population: 808,437. ...
  5. Orange County, California. ...
  6. Brooklyn, New York. ...
  7. Los Angeles, California. ...
  8. Washington, D.C. ...

Where are home prices dropping the most in the US? ›

States with falling home prices

Between the second quarters of 2022 and 2023, home prices fell the most in Nevada, decreasing by 5.3%, followed by Utah (-4.5%) and Idaho (-4.1%). Home prices in Washington, DC, also fell by 4.9% during this period.

Where are house prices falling most? ›

The East of England (-1.7%), the South East (-1.6%) and the South West (-1.4%) are the worst hit when it comes to house price falls. London and the East Midlands are the final two regions where house prices have fallen over the last year, although these are minor at -0.7% and -0.2% respectively.

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