Communities around U.S. saw significant real estate price increases last month

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FILE—A 'Sold' sign sits outside a freshly off the market home.

FILE—A 'Sold' sign sits outside a freshly off the market home.

Rogelio V. Solis/AP

Homes across the country are seeing listing price increases as we ride into the new year.

The nation saw an increase of 10% in listing prices for the last month of 2021. This was an increase from the 8.6% rate in November, according to a report from Realtor.com. This rate increase brought the median home listing price to $375,000 at the end of the year.

“December data offers a fitting finish to the frenzy of the past year,” Realtor.com Chief Economist Danielle Hale said in a statement. “Annual listing price growth hit double-digits again nationwide and in many of the hottest markets, after four months of single-digit pace this fall.”

The report expects that prices may continue to rise and cause challenges for home buyers, especially for a typical 2,000-square-foot single family home. These homes alone saw an increase of 18.6% from December 2020 to December 2021.

“With rate hikes now on the horizon, buyers may be trying to get ahead of higher monthly housing costs, in turn driving up competition and prices,” Hale said. “Our 2022 Forecast anticipates affordability challenges this year, but also that trends like rising incomes and workplace flexibility could offer some Americans a better shot at finding a home. For those who weren’t successful in 2021, we expect better luck in the coming months as more sellers plan to enter the market — and if December’s listings are an indication, with high asking prices in mind.”

In December, active listings throughout the country declined by 26.8% with 177,000 fewer homes on the market compared to 2020.

Despite the price increases, the typical home sold spent 54 days on the market last month. This is 11 days less than December of 2020, according to the report. A seasonal slowing in house sales was expected, but the overall for the month was only 7 days more than November.

The 50 largest metro areas in the country saw a generally lower rate than the overall national rate with only a 5.4% increase in home prices. This includes the Detroit-Warren-Dearborn metro area, which actually saw a decrease in prices.

The Detroit metro area saw a 14.2% decrease in listing prices in the last month of the year bringing the median price to $217,000. The median time for a sold home to have been on the market was 44 days, which was still 7 less than the year before at the same time.