Home prices are red-hot in nine major US cities – rising by at least 7% in a year – is YOUR metro area one of them?

Home prices in Detroit are rising at the fastest pace in the country as the city recovers from the mortgage crisis that has left some homes virtually worthless.

In the year to November 2023, property prices in the Motor City rose by 8.2 per cent, according to the latest figures facts of the main measure of US home prices.

Prices in San Diego, meanwhile, rose 8 percent year-over-year — the second most of any city.

Homes in New York City and Cleveland rose 7.4 percent annually, while real estate prices in Los Angeles and Miami rose 7.2 percent through November 2023. Scroll down for the full list.

While markets in these cities are still red-hot, home prices across the country actually started to cool in November after nine straight months of gains, the data showed.

According to the S&P CoreLogic Case-Shiller national home price index, total housing costs fell 0.2 percent from October 2023 – the first decline since January 2023.

It came at a time when mortgage rates were at a peak, with the average 30-year fixed-rate loan at almost 8 percent last October.

“Interest rates have fallen more than 1 percent since then, which could support further annual home price growth,” said Brian Luke, head of commodities, real and digital assets at S&P DJI.

Despite the monthly lull, prices nationally were still higher than the year before, the data showed. As of November 2022, they rose by 5.1 percent.

It comes after a separate report found that home prices in Detroit were rising the fastest than in any US city.

Less than 20 years ago, one in five homes in the city stood empty, as foreclosures soared and properties on deserted streets sold for $1.

The mortgage crisis and the demise of the major automakers – which had turned Detroit into an industrial powerhouse – drove millions of people from their homes.

While home prices are now rising rapidly – ​​as the auto industry booms again, this time for electric vehicles – the city is still among the cheapest in the US.

Average home prices are under $200,000, and homes with as many as nine bedrooms are available sale for less than $125,000 on marketplace Zillow.

This 5,200 square foot home with a whopping nine bedrooms and eight bathrooms is currently mention for just $124,900 on the real estate market.

This nine-bedroom, eight-bath home is currently for sale for $124,900 in Detroit

Detroit lagged behind other cities in home price growth, according to Selma Hepp, chief economist at CoreLogic. So part of this growth is catching up.

Research and development of EV vehicles concentrated in Detroit is one reason for price increases, said Selma Hepp, chief economist at CoreLogic.

“The region has had some successes in securing investment for future manufacturing and especially for research and development in EV vehicles, and real average wage growth was double the national rate between 2022 and 2024,” she said.

‘That has helped increase the purchasing power of consumers in the region.’

The big three automakers – General Motors, Ford and Jeep maker Stellantis – are all based in Detroit, putting the company back at the forefront of US auto manufacturing – and especially the growing EV industry.

Across the country, the market remains hot as pent-up demand drives up costs.

Rising mortgage rates effectively froze the market for millions of Americans in the second half of last year. , and coupled with a historic drop in listings, prices continued to rise.

The mortgage crisis and the fall of the major automakers into bankruptcy drove millions of people from their homes in Detroit (photo: abandoned properties in 2015)

But experts predict a rebound in the market this year, with prices finally starting to fall.

NAR chief economist Lawrence Yun told DailyMail.com earlier this year: “Mortgage rates are significantly lower compared to just two months ago, and more inventory is expected to enter the market in the coming months.”

He added: ‘It is clear that the recent rapid three-year increase in house prices is unsustainable.

“If price increases continue at the current pace, the country could accelerate into ‘haves’ and ‘have-nots’.

“Creating a path to homeownership for current renters is essential. It requires economic and income growth and, most importantly, a steady build-up of housing.”