From CNBC:

The housing market continues to see rapid price increases, with national home prices rising 5.2% in November compared to the previous year. States in the Northeast, such as Rhode Island, Connecticut, and New Jersey, experienced the strongest growth, while Idaho, Utah, and Washington, D.C. saw year-over-year price declines.

Lower mortgage rates have contributed to the increase in home prices, as consumers’ buying power has grown. The sustained inventory shortage and lack of new homes for sale have further driven up prices and demand. Although prices are expected to soften slightly later next year, much of that will depend on supply.

After hitting record lows in the first two years of the pandemic, mortgage rates began to rise and reached a more than 20-year high in October. However, rates have since fallen back and are now in the high 6% range, resulting in a greater buying power for consumers.

Detroit has surpassed Miami as the city with the largest annual home price gain, with an 8.7% increase, surpassing Miami’s 8.3%. Although Detroit’s home prices are still among the most affordable in the nation, the market is considered overvalued due to local income levels.

Roughly 82% of the housing markets surveyed by CoreLogic were considered overvalued, indicating that home prices are overly high compared with local household incomes. Large cities considered “normal” in valuation included Boston, Chicago, Los Angeles, and Washington, D.C., suggesting that the affordability of a market depends on who is buying in the area.



Read more: Home prices surge, Detroit gains beat Miami