Home prices hit record levels in 2006, only to collapse over the following three years as The Great Recession deepened. Too many Americans who could not afford a home received mortgages in the early 2000s, and this drove hundreds of thousands of foreclosures. By most measures, the housing market has entirely recovered. Home sales over the last several months have been unusually brisk, and in a number of cities, prices have risen by double digits. As a matter of fact, in the 10 years that ended in 2019, several cities have had home prices that jumped by over 50%.
Property Shark looked at 37 cities to determine those where home prices rose the most from 2009 to 2019. They took into account single-family, two- to four-family, condo, co-op, townhouse, rowhouse, modular/mobile, and other residential properties. Their primary finding was that “The 2019 national median resale price was $275,000, rising 35% over the course of a decade.” The figures were adjusted for inflation.
Interestingly, a number of places where home prices rose the most over the 10 years covered were relatively inexpensive markets. Sacramento ranks second on the list with home price values that rose 93% from $154,700 to $298,750. Prices in Phoenix, which ranked third based on home price appreciation at 78% rose from $130,900 to $233,000. In close-by Mesa, AZ home prices rose 58% from $164,220 to $259,000.
Property Shark points out that:
“As far as home price evolution at the city level, it became clear that West Coast homeowners fared the best. Specifically, of the 10 sharpest home price gains, eight were recorded in western states, with California alone claiming four…”
The market at the top of the list was Oakland, CA which posted a rise of 113% from $285,600 to $607,500. Two of the most expensive markets in America, each close to Oakland, also had sharp spikes in value. The price of a home in San Francisco rose 71% from $755,650 to $1,295,000. Home prices in San Jose rose 70% from $490,875 to $836,000.
The home price surge across most of the U.S. has not ended. Figures from research firms which include Case Shiller showed double-digit increases in almost all large American markets over the course of 2020 and early 2021. The surge could end, either because homes become prohibitively expensive in some markets, or mortgage rates rise. However, neither of those is likely to happen soon.