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Credit Karma Study January 9, 2023 Although housing prices rose in many areas of the country over the past year, some locations were more affected than others. Credit Karma created a method to rank 250 of America’s largest cities based on two factors. This was in order to determine where home prices rose the most […]

Credit Karma Study

January 9, 2023

Although housing prices rose in many areas of the country over the past year, some locations were more affected than others.

Credit Karma created a method to rank 250 of America’s largest cities based on two factors. This was in order to determine where home prices rose the most in 2022.

  1. Year-over-year increase in median home sales price between June 2021 and June 2022
  2. From January 2022 to June 20,22, there was a significant increase in the median home sales price

You can find our complete methodology at the bottom of this article.

Here is a quick overview of five cities that experienced the highest median home price rises, beginning with the one with the largest increase in prices.

  1. Beaumont, TX
  2. Tyler, Texas
  3. Irving, Texas
  4. Dayton, OH
  5. Newark, DE

Let’s take a look at five cities that experienced the greatest decreases.

  1. Yonkers, NY
  2. Glendale, CA
  3. New York, NY
  4. Salinas, CA
  5. Canton, OH

Continue reading to find out more about cities where home prices have risen the most or least.

Snapshot of Credit Karma Stat


Key findings regarding home price increases

Texas’s Beaumont, Tyler, and Irving saw the highest median home price rises. However, prices in these three cities are still lower than other areas of the country.

More than half of the 20 U.S. cities with the highest price rises in 2022 were located in Texas and Florida.

Yonkers, New York, New York City, and Glendale, California saw the largest price drops. Glendale experienced a 8.8% drop in median home prices between January and June 2022. Yonkers also saw a drop of 8.8% in median home prices between January and June 2022. This is a less dramatic decrease than Glendale’s, which dropped 1.5% over the same six-month period. However, Yonkers prices dropped 9.9% from June 2021 through June 2022.

Credit Karma used Redfin data for its ranking of the cities with the highest and lowest median home sales prices.


Rank

City
Price change June 2021-June 2022 (%) Price growth January-June 2022 (%)

1
Beaumont, TX 66.7% 52.7%

2
Tyler, Texas 17.8% 81.1%

3
Irving, Texas 39.2% 39.7%

4
Dayton, OH 40.5% 31.2%

5
Newark, DE 42.9% 21.8%

Rank

City
Price change June 2021-June 2022 (%) Price growth January-June 2022 (%)

1
Yonkers, NY -9.90% -1.5%

2
Glendale, CA 6.4% -8.8%

3
New York, NY 0.0% -1.2%

4
Salinas, CA 1.8% -3.3%

5
Canton, OH -9.1% 9.5%


Top 5 Cities with the Highest Home Prices

Credit Karma used Redfin data for the identification of the top and bottom cities in the country with the highest median home prices.


City

June 2022 median home price
Sunnyvale, CA $1,875,000
San Francisco, CA $1,540,000
Bellevue (WA) $1,512,000
Fremont, CA $1,465,000
San Jose, CA $1,380,000

Unsurprisingly, four of the five most expensive cities to buy a home in the U.S. are in California — the country’s fourth-most-expensive state after Hawaii, Washington, D.C., and Massachusetts.

Sunnyvale, San Francisco and Bellevue experienced small price increases. San Jose saw modest price drops, while Fremont was 16th in our top 20 cities with the largest overall price drop.


Top 5 Cities with the Lowest Home Prices


City

June 2022 median home price
Detroit, MI $99,200
Saginaw (MI) $115,000
Dayton, OH $123,950
Toledo, OH $126,500
Canton, OH $127,250

Ohio and Michigan are the two states with the lowest home prices. Canton and Saginaw had fifth and sixth lowest price increases, respectively. Dayton and Detroit had fourth and seventh largest price increases.

Toledo saw a modest increase in prices year-over-year, but a larger jump between January 2022 and June 2022.


Will U.S. house prices drop in 2022?

The average increase in home prices between January and June 2022 across the 250 cities that we examined was 14.31%. A combination of factors including increased demand, decreased supply and pandemic-related supply chain disruptions combined with low interest rates led to a sharp increase in housing prices over the past year. However, home prices won’t continue to rise at an inexorable pace.

The interest rates have risen by more than 3 percentage points since the start of the year. October 2022 saw a decrease in home sales by 28.4% compared to October 2021. Mortgage applications are also falling. These signs indicate that the housing market is cooling.

However, real estate trends vary by region. It all depends on where you live.

Why is rent so expensive right now?

For most homebuyers, securing a mortgage is an essential step. These tips will help you to navigate the process and find the best rate for your situation.

  • Have your credit in order. Those with better credit scores and more solid credit reports are likely to qualify for lower interest rates. If your credit scores and reports are not in order, you may be able to qualify for a better rate. If you discover errors in your credit reports, be sure to correct them.
  • Reduce your debt. To qualify for a mortgage you must have a debt to income ratio (or DTI) of at least 43%. However, lower numbers are better. Lender requirements can vary. Reduce your debt if your DTI is high before you start house hunting.
  • Compare rates from different lenders. Rates can vary widely between lenders. Compare rates from several lenders to ensure the best rate.
  • Get preapproved. Sending a letter of preapproval for a mortgage along with your offer will show sellers that you are serious about getting financing. Preapproved buyers are generally more likely to accept offers.
  • Gather all your documents. Lenders will need to see a range of documents including tax returns, pay slips, W-2s or proof of income, bank statements and investment statements, gift letters, photo ID, rental history, and rent history (if applicable).


Methodology

  1. Redfin: Year-over-year increase in median sales price between June 2021 and June 2022
  2. Redfin: Growth in median sales price between January 2022 and June 2022


Sources