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The median price per square foot has grown 52.7 percent since 2019, according to Realtor.com’s latest market report published on Tuesday. That metric means housing values have grown at more than double the pace of the consumer price inflation index, which rose 23 percent during the same period.
Danielle Hale
“The specifics will vary from market to market, but the data suggest ongoing opportunity for many sellers,” Realtor.com Chief Economist Danielle Hale said of the meteoric rise in home values. “Though with mortgage rates still much higher than many existing homeowners enjoy, this opportunity favors sellers who don’t have to replace a mortgage, such as investors or second homeowners looking for an exit, or equity-rich homeowners looking to downsize in their current area or to a lower-cost region, as well as those planning to rent their next home.”
Over the past year, the median home sale price rose 0.3 percent from $441,000 to $442,500. However, the median price per square foot — which Realtor.com said can be seen as a more accurate indicator of a home’s value — rose 3.8 percent from May 2023.
The median price per square foot has risen in nearly half of the U.S.’s top 50 metros since 2019, with New York (84.7 percent), Boston (72.9 percent) and Nashville, Tennessee (68.6 percent), experiencing the biggest gains.
“The difference between percent change in median listing price and median price-per-square-foot shows that, in this time frame, the share of inventory of smaller and more affordable homes has grown, which helps hold down the median price even as per-square-foot prices grow further,” the report read.
“When looking at pre-pandemic levels, across the country the median price-per-square foot experienced staggering increases.”
The boost in home values has encouraged more sellers to come off the sidelines over the past seven months, with the number of homes for sale growing 32.5 percent year over year. Homes in the $200,000 to $350,000 range have experienced the most significant boom, with inventory in this price range 46.6 percent above the previous year.
