Chicago posted one of the largest annual home-price increases among major U.S. metros, with median sale prices rising 7.7% year over year during the four weeks ending June 14, according to a new Redfin report.

Only San Francisco, Pittsburgh and St. Louis recorded larger increases among the 50 most populous metro areas tracked by Redfin. Jacksonville fell right behind Chicago. At the same time, the Chicago market also saw a 10.5% increase in new listings, placing it among the metros with the strongest year-over-year growth in seller activity.

By comparison, the largest increases in new listings were recorded in Boston; Montgomery County, Pennsylvania; Philadelphia; and St. Louis. On the other hand, the metros with the biggest decreases were Dallas; Indianapolis; Riverside, California; San Antonio; and Atlanta.

The price gains come as affordability challenges continue to weigh on buyers nationally. Redfin reported that the median U.S. monthly housing payment climbed to $2,647 during the four weeks ending June 14, the highest level in a year and just shy of the all-time high reached in 2023. The increase is being driven by a combination of rising home prices and elevated mortgage rates. The median U.S. sales price reached a record $403,889, up 2.3% year over year, while the weekly average mortgage rate stood at 6.52%.

As housing costs remain high, some buyers are stepping back from the market. Redfin noted that pending home sales nationwide fell for the fifth consecutive week, while new listings also declined. Economic uncertainty is contributing to buyer hesitation alongside affordability concerns.

Nationally, home prices increased in most major metros, though several Western markets posted declines. San Jose recorded the largest annual price drop, at 5.3%, followed by Portland, Seattle, San Antonio and Orlando. Redfin also reported that home prices declined in 11 of the 50 largest metros overall.