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Home prices are surging across the country, but a handful of areas have felt some of the highest appreciation in the country—28% or more in one year.
The majority of the 10 areas recording the largest annual gains are in midsize and small markets, and half are located in Florida, according to a new quarterly housing report released by the National Association of REALTORS®.
“Traditionally, homes in these markets were viewed as relatively inexpensive, but with recent migration trends, prices have increased significantly,” says Lawrence Yun, NAR’s chief economist. “As more families relocate to various areas, we may see some surprising markets on our top 10 list.”
Price increases in many smaller tertiary cities are outpacing those in more expensive primary and secondary markets, Yun adds. “This is due to buyers looking for less expensive housing and also as a result of more opportunities to work from home, making relocation to smaller markets possible,” he says.
Many of the most expensive housing markets in the U.S. are located in California. The 10 most expensive real estate markets, according to NAR’s quarterly report, are:
- San Jose-Sunnyvale-Sta. Clara, Calif.: $1.875 million, up 25% year-over-year
- San Francisco-Oakland-Hayward, Calif.: $1.38 million, up 15% year-over-year
- Anaheim-Sta. Ana-Irvine, Calif.: $1.26 million, up 26% year-over-year
- Urban Honolulu: $1.128 million, up 19.9% year-over-year
- San Diego-Carlsbad, Calif.: $905,000, up 18.5% year-over-year
- Boulder, Colo.: $859,100, up 18.2% year-over-year
- Los Angeles-Long Beach-Glendale, Calif.: $792,500, up 13.1% year-over-year
- Seattle-Tacoma-Bellevue, Wash.: $746,200, up 14.2% year-over-year
- Naples-Immokalee-Marco Island, Fla.: $745,000, up 24.3% year-over-year
- Denver-Aurora-Lakewood, Colo.: $662,200, up 19.4% year-over-year