03:12 PM EST, 01/21/2025 (MT Newswires) -- US home prices in December recorded their biggest annual increase in almost a year, with all 50 of the most populous metropolitan areas tracked by Redfin (RDFN) seeing year-over-year gains for the first time since May 2022.

Nationally, home prices jumped 6.3% on an annual basis to a median $427,670 last month, Redfin (RDFN) report showed Tuesday. The real estate brokerage attributed the rise to a shortage of for-sale homes and signs that buyers have become accustomed to high mortgage rates.

Among US metros, Cleveland saw a 15% surge in the median home sale price, the highest, followed by Milwaukee and Philadelphia. Tampa, Florida, posted the smallest annual gain, at 0.5%.

A year earlier, home prices grew in 41 of the most populous metros, according to the report.

"Places that have long been known as affordable places to live, like Cleveland and Milwaukee, are now seeing double-digit price increases -- and that's after home prices skyrocketed during the pandemic," Redfin Senior Economist Elijah de la Campa said. "Affordable housing havens have become harder and harder to come by; even places that saw some price relief last year, like Texas and Florida, are now seeing prices tick back up.

On Friday, government data showed that US housing starts climbed more than expected in December as multi-family projects logged sharp gains sequentially.

"Many people looking to move this year will likely opt to rent because it's the more affordable option and rental affordability is expected to improve as more supply comes on the market," de la Campa said Tuesday.

Price: 7.75, Change: +0.05, Percent Change: +0.72