Modest homes are winning the market
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The hottest homes on the market aren't the showiest — they're the ones buyers can still afford, Realtor.com finds.
Why it matters: In today's expensive market, fierce competition for cheaper homes is driving up their prices.
By the numbers: Median asking prices for colonial and traditional homes, some of the most affordable styles, jumped 5.6% in May from a year earlier.
- That's the biggest increase of any architectural style researchers analyzed.
The other side: Sprawling Mediterranean-style homes, common in costly areas like Los Angeles and Miami, saw prices flatten.
The big picture: "In general, higher-price home styles have appreciated less than lower-priced styles in the past year, a nod to economic and policy uncertainty as well as the rising cost of ownership," Realtor.com's Hannah Jones wrote in the report.
Reality check: No matter the look, home prices have soared since the pandemic.
- The median U.S. home sold in the first quarter cost roughly $417,000 — 33% more than in 2019, according to federal data.
Zoom in: Colonial and traditional style homes, including the ever-present farmhouse, made up around half of all single-family listings in May.
- They're especially popular in Houston (9%), Atlanta (8.7%) and Dallas (4.5%).
- More homes overall are for sale in the South and West compared to other parts of the country.
The bottom line: It pays to be modest.
