Home prices have gone through an extraordinary surge in the last year and a half. According to the gold standard research on home prices — the S&P CoreLogic Case-Shiller Index — home prices nationwide rose 20.6% in March year over year, the latest month for which data are available. That was the highest increase in the history of the index. Among the 20 cities reviewed for the 20-City Composite, prices rose the most in Tampa at 34.9% year over year.
Commenting on the increase, Craig J. Lazzara, managing director at S&P DJI said, “Those of us who have been anticipating a deceleration in the growth rate of U.S. home prices will have to wait at least a month longer.”
These increases have been driven by several factors. One has been historically low interest rates based on a 30-year fixed rate mortgage of under 3%. But those days are now over, and rising interest rates have pushed the rate on these mortgages to over 5%. (Some places may have started feeling the effect of higher interest rates. Here are 10 U.S. cities where home prices are actually falling.)
Another factor in home price increases has been low supply of new homes. Supply chain issues have slowed home construction, a problem that troubles many other industries such as auto manufacturing. And when supplies like lumber have been available, they have often been expensive.
Yet another reason is that a large portion of the American population became more mobile over the course of the pandemic. Large numbers of companies had to shutter offices because of the virus, and people began to work from home. Some of these companies will never require people to return to the offices. Others will only require people to be in offices part time. People have been able to move to locations they find attractive instead of those that are closer to their work. Home prices in popular places like Boise, Idaho, have risen over 50%.
The median sales price of a home in America has risen to $428,700, according to the St. Louis Federal Reserve. However, the very rich often shop for homes worth many times that. In places like San Jose, California, median home prices are north of $1 million. And even in those places where median home values are high, some houses are far more expensive. (These are cities with skyrocketing home prices this summer.)
To find the most expensive home for sales in every state, 24/7 Wall St. reviewed The Most Expensive Home for Sale in Every U.S. State, published by Point2, a real estate data company. All prices are for listings active from June 1-6, 2022.
Even in states with small populations, this figure is well above $2 million. And in many states, the most expensive home is well over $10 million. In four states the price is $100 million or more, with the price of the most expensive home on the list $225 million.
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