Housing prices in the United States have trended upwards for decades, but have risen again as a result of the COVID-19 pandemic, especially in some places.
Median U.S. home prices in Q1 2020 were $329,000 and soared to $428,700 in Q1 2022 as the COVID-19 pandemic gripped the country.
Current home prices are just over 30% higher than they were in 2020 and have risen almost 16% since 2021.
As housing prices soar across the country amid record high inflation rates, here are the cities with the highest median list prices.
In April 2022, California cities dominated in terms of expensive housing markets, according to research data from Zillow.
Of nearly 100 cities analyzed by Zillow, San Jose was the only city to top the average home price by $1 million with a median list price of $1,390,000.
The Los Angeles area, which also included Long Beach and Anaheim, Calif., ranked second and had a median list price of $998,330.
San Francisco was not far behind the City of Angels, with a median list price of $978,478.
With a median list price of $943,967, the Pacific Coast city just north of Los Angeles was about $35,000 less than the three most expensive cities in California.
San Diego’s median list price held steady at $921,000, according to data from Zillow.
Experts say even higher prices elsewhere in the state are contributing to the city’s hot market.
“What I’ve seen is a lot of people in the LA, San Francisco, and San Jose areas are starting to be overpriced in their markets and are turning their attention to San Diego because of the location, and a lot of these other markets are appreciating much faster, we’re seeing a lot of these people coming here,” Destiny Roxas, a San Diego real estate agent, told NBC 7, a local news station.
Outside of California, Stamford, Connecticut led the rest of the country with median listing prices just under $900,000.
The city is located just 40 miles from New York City and has the highest density of high-income households in the country.
Back on the West Coast, Seattle ranked seventh with a median list price of $782,997.
However, rising mortgage rates and other factors have led experts to say the market cannot continue to grow at the rapid pace seen during the pandemic, according to the Seattle Times.
“Things seem to be leveling off,” Kristina Loper, an agent for Keller Williams in the area, told The Times.
Boston was next with $746,000. The city’s real estate market is “overvalued,” according to Boston.com, which cited a CoreLogic report released earlier this month.
Melvin Vieira Jr., chairman of the Greater Boston Real Estate Board, told the outlet that he’s seen market intensity diminish over the past several months.
“We’re going to have fewer bidding wars on properties under $1 million,” he said. “You’re really going to see price leveling and even price adjustments. We’re not going to see as many multiple offers on homes in this price range. »
Urban Honolulu was next with a median list price of $721,667. The area has seen record home prices this year, a trend the Honolulu Board of Realtors attributes to supply and demand.
“What everyone is asking is when will this lead to a normalization of the market,” board chairman Chad Takesue told Hawaii News Now, a local news station. .
“Until inventory levels reach a point where they meet, we continue to expect to see a competitive market,” Takesue added.
New York City
New York City completes the top ten, with a median list price of $692,333.
Despite high prices, the city is emerging from a recent spike in apartment sales. In the third quarter of 2021, the city saw more apartment sales than at any time in the past 32 years, according to The New York Times.
Soaring house prices have also made the rental market even more competitive, as more and more people who would once have considered buying a home have looked to rent instead.
But Doug Duncan, senior vice president and chief economist at government-backed mortgage giant Fannie Mae, said he expects home sales, home prices and mortgage volumes to decline in the over the next two years.
“In particular, we expect house price growth to slow to a pace more consistent with income growth and interest rates,” Duncan said after his group predicted that inflation and other economic factors could contribute to a possible “modest recession” in 2023.