YoY home prices have skyrocketed in these U.S. cities
Related: Top reasons for homeowners' insurance rate increases
But the news is not all bad, especially for homeowners. Home prices in the U.S. were up an average of 3.1% in August over the same month in 2023, the real estate aggregator Redfin reported. The median home price was $433,229. With homes nationwide becoming less affordable, year-over-year home sales fell by an average of 5.5%, and many fewer homes sold at or above listing price, Redfin reported. However, real estate is especially sensitive to local economics, and homeowners in some U.S. cities are faring far better than others. The slideshow above illustrates 10 cities in the U.S. where home prices grew the fastest over the past year, according to Redfin. Property value fluctuations can spur the need to review insurance coverage as adequate insurance takes into account the property's current replacement value. Policygenius Managing Editor Pat Howard has this advice for homeowners regarding property value vs. replacement value: "To be on the safe side, you may want to consider getting your own replacement cost estimate from a licensed appraiser who specializes in rebuild cost appraisals. Remember, you're not looking for a market value appraisal — you want one that is only concerned with how much it would cost to rebuild the physical structure of your home and surrounding structures." Homeowners whose replacement value increased alongside their property value should consider purchasing an extended replacement cost add-on for the peace-of-mind of knowing that their investment is fully covered in the event of a major loss. See also:
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