Median Worth Per Sq. Foot Is Up 52.7% Since 2019: Realtor.com
Residence values have boomed over the previous 5 years, with New York, Boston and Nashville experiencing double-digit features within the median worth per sq. foot.
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The median worth per sq. foot has grown 52.7 % since 2019, in line with Realtor.com’s latest market report published on Tuesday. That metric means housing values have grown at greater than double the tempo of the consumer price inflation index, which rose 23 % throughout the identical interval.
Danielle Hale
“The specifics will differ from market to market, however the knowledge counsel ongoing alternative for a lot of sellers,” Realtor.com Chief Economist Danielle Hale mentioned of the meteoric rise in residence values. “Although with mortgage charges nonetheless a lot larger than many present householders get pleasure from, this chance favors sellers who don’t have to exchange a mortgage, similar to investors or second homeowners in search of an exit, or equity-rich householders trying to downsize of their present space or to a lower-cost area, in addition to these planning to lease their subsequent residence.”
Over the previous 12 months, the median residence sale worth rose 0.3 % from $441,000 to $442,500. Nevertheless, the median worth per sq. foot — which Realtor.com mentioned may be seen as a extra correct indicator of a house’s worth — rose 3.8 % from Might 2023.
The median worth per sq. foot has risen in practically half of the U.S.’s prime 50 metros since 2019, with New York (84.7 %), Boston (72.9 %) and Nashville, Tennessee (68.6 %), experiencing the most important features.
“The distinction between % change in median itemizing worth and median price-per-square-foot exhibits that, on this time-frame, the share of stock of smaller and more affordable homes has grown, which helps maintain down the median worth at the same time as per-square-foot costs develop additional,” the report learn.
“When pre-pandemic ranges, throughout the nation the median price-per-square foot skilled staggering will increase.”
The increase in residence values has inspired extra sellers to come back off the sidelines over the previous seven months, with the variety of properties on the market rising 32.5 % 12 months over 12 months. Houses within the $200,000 to $350,000 vary have skilled probably the most vital growth, with stock on this worth vary 46.6 % above the earlier 12 months.
