Home prices in Detroit are rising even faster than in Miami

The price of a single family home rose faster in the Detroit area than any other large U.S. metro in the year through November, bringing Miami's 16-month run as the nation's fastest-appreciating market to an end.

Detroit posted the highest year-over-year home price increase among the nation's top 20 markets with a 9.2% gain, beating Miami's 8.3% rise, according to property data provider CoreLogic. Overall, U.S. home prices increased 5.4% in the year ending in November.

"Home price appreciation continued to push forward in November, despite the new highs in mortgage rates seen over the year," said Selma Hepp, chief economist for CoreLogic. "Markets where the prolonged inventory shortage has been exacerbated by the lack of new homes for sale recorded notable price gains over the course of 2023."

Homes in the three largest U.S. markets, the New York City, Los Angeles and Chicago metro areas, gained 7.2%, 4.3% and 6.3% respectively. Meanwhile, home prices in the San Francisco area are down 2.5%, the only major metro to see a decline. 

While home prices in Detroit are on the rise, the latest data available from Zillow show the average price of a single family home is about $239,000, making it the least expensive of the top 20 metro areas. Meanwhile in Miami, the average price of a similar home was $550,000, up almost 60% since the start of the pandemic.

CoreLogic projects that U.S. annual home prices will gain another 2.5% by November 2024, but some markets are under considerable pressure.

Four of the top five markets at "very high" risk of home price declines in the next year are in Florida, including the Palm Bay, West Palm Beach, Tampa, and Deltona areas. Atlanta is also on the list of metros where Coreogic estimates at least a 70% probability of a price drop.