Home prices in the United States have skyrocketed this year. According to the carefully followed S&P Corelogic Case-Shiller Index, which tracks U.S. home prices, the median price of a home nationwide rose 19.8% in August, compared with the same month last year. In Phoenix, San Diego, and Tampa, Florida, that figure was above 25%. And the city with the most expensive houses in America is the San Jose, California, metro area.
There are several reasons for the jump in housing prices. Among them are extremely low interest rates. Another is the migration of people from large coastal cities like New York and San Francisco to less expensive cities inland. In theory, these should have cheaper real estate. However, sharp increases in demand for houses have pushed prices up by double-digit percentages. (Still, you can buy a home for under $100,000 in these American cities.)
Many people who have moved also believe that smaller cities and towns have a better quality of life. Moreover, the ability to work from home, largely triggered by the COVID-19 pandemic, has allowed people to move long distances from their offices.
Realtor.com’sSeptember 2021 Monthly Housing Market Trends Report points out, “The median national home price for active listings remained the same from August through September, at $380,000. The median listing price again grew by 8.6% over last year, the same growth rate as last month.”
Despite the migration from large coastal cities, these cities continue to have the most expensive real estate prices. The market in the San Jose metropolitan area has a median list price of $1,250,000, the highest in the country. Nearby San Francisco has a median asking price of $993,000, also remarkably high. The median list price in New York is also very high at $608,000. (Find out if they are also among the American cities with the highest share of luxury homes for sale.
To find the median asking prices of homes in the top 50 U.S. metropolitan areas, 24/7 Wall St. used Realtor.com’sSeptember 2021 Monthly Housing Market Trends Report.
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