The 10 markets with the biggest home-price increase between February 2020 and January 2023

In places such as Hartford, Conn., and Buffalo, N.Y., more affordable homes and limited housing supply supported annual price gains around 8% in January. 

“The uptick in interest rates does not seem to have had any effect on our market,” said Lisa Barall-Matt of Berkshire Hathaway HomeServices New England Properties in West Hartford, Conn. Housing markets in the state lagged behind most of the country for years following the housing crisis. She said the area’s relative affordability compared to Boston and New York is now keeping demand strong.

Alison and Dylan Conway, who are expecting their first child in May, are moving from Maryland to Connecticut to be closer to family. They lost out on three offers in the Hartford area to higher bidders before having their fourth offer accepted for a three-bedroom house in East Hampton, Conn.

“We really didn’t think that it was going to be so competitive,” Ms. Conway said. “We went to several open houses in Connecticut, and there were 20 cars packed outside the second it opened. It was wild.”

Existing-home sales rose in February, snapping a 12-month streak of declines, the National Association of Realtors said last week. The median existing-home sale price fell 0.2% in February to $363,000, the first year-over-year decline in 11 years. 

Many economists expect home prices to fall further on an annual basis this spring or summer, as Western markets continue to slide and some Eastern markets start posting year-over-year declines. Metro areas in the Southeast that experienced big price run ups in recent years such as Nashville, Tenn., or Raleigh, N.C., are especially vulnerable to price declines, analysts say. 

The housing market is at a pivotal moment heading into the crucial spring selling season. Declining mortgage rates in December and January spurred a pickup in activity, but some of the momentum halted in February as rates started to climb again. 

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