America’s housing market continued to cool this summer as high interest rates keep buyers at bay. But there are some markets that are still growing amidst the doom and gloom.
Home values suffered a precipitous drop from July to August, falling by 0.3%, according to Zillow’s housing most recent market report. It’s the largest month-to-month fall since 2011. Experts have already declared a housing recession is upon us.
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And more bad news came Wednesday when the Federal Reserve announced another supersized rate hike, throwing even colder water on the housing market. A 30-year-mortgage rate is now above 6%, a chilling perspective for anyone hoping to buy or sell.
But some markets in the Midwest and the South are bucking the trend, with home prices actually going up. If you live in one of these cities and are thinking of selling, the market is still in your favor.
Nicknamed “Magic City,” Birmingham saw the strongest month-to-month value growth, according to Zillow. With a metro population of about 1.1 million, houses in this southern city added 0.9% of value from July to August.
The typical home value in Birmingham was $109,000 in August — up more than 17% from a year before, according to Zillow.
While most housing markets in the country are quickly becoming buyer’s markets, Birmingham still favors sellers. Houses might spend a median of 44 days on the market, but there are still more buyers than homes up for grabs, according to Realtor.com. The median sale price hit $234,900 in August.
Redfin calls Birmingham’s housing market “somewhat competitive.”
One of the largest cities in the Midwest with a metro population of nearly two million, Indianapolis still has a “very competitive” housing market, according to Redfin.
And Zillow’s report shows this market got a 0.5% bump in value in August from July. The median listed price was $240,000 in August, an increase of just over 12% from the year before, according to Realtor.com.
And though homes are taking a little longer to sell these days, sellers are still getting multiple offers, says Realtor.com.
Part of this is driven by a lack of inventory to meet demand. In Marion Country, there were 7.5% fewer new listings in August 2022 compared to the year before, according to the Indiana Association of Realtors.
Cincinnati is another Midwestern city where homes went up in value. Its market value grew by 0.4% in August from July, according to the Zillow report.
With a metro area population of about 2.2 million, [Redfin] defines its housing market as “somewhat competitive.” And though the average house takes about 40 days to sell, sellers are still getting multiple offers, says Redfin.
But that status doesn’t look guaranteed for much longer. Prices for homes held steady from July to August, but [Realtor.com] defines Cincinnati as a buyer’s market, which means that the supply of homes is now outpacing demand in the city.
The home of the Kentucky derby and fried chicken can also add being one of the most resilient housing markets in the country to its list. Home values in Louisville grew 0.2% in August from July, according to Zilllow.
With a metro population of about 1.4 million, there’s still significant demand for houses in Louisville. Redfin calls this market “very competitive.”
The median listed price in Louisville is $240,000, up more than 9% from last year, though the number of homes sold fell slightly.
But if you live in Louisville and you're thinking of selling, the market is still on your side. According to research by Garret’s Realty Group, based in Louisville, the city is still a seller’s market.
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