It’s hard to imagine a hotter residential housing market than the United States right now. The frenzy of activity has lasted for two years. January’s data proves that the rise will not stop in the near future.
Some markets have attracted so many buyers that home prices have risen more than 50% in recent quarters. The median home price in America sits at a record high of $350,000. The figure could approach $400,000 by the end of the year.
One of the reasons for this jump is that people want to leave the more expensive markets, especially those on the coasts. Home prices hit two to three times the national median in New York and San Francisco. Prices in small inland towns are well below these levels. And the overall cost of living outside of these cities attracts people who want their money to go further.
Low mortgage rates (which have started to rise) also encouraged buyers. Mortgage activity has reached an incredible level as house prices have risen.
Finally, the COVID-19 pandemic triggered a closure of business offices. Some people have been told that they will not need to return to their services. This has created an unusual opportunity for mobility for millions of Americans.
America has always had wealthy enclaves, and they continue to house expensive homes. Often these have become holiday destinations. Others are suburbs of large cities. Yet others are big cities that have seen huge influxes of people, especially those where shoppers are well-educated and have high incomes.
According to Realtor.com’s just-released Living the Dream: Here Are the Hottest Luxury Real Estate Markets in America Right Now report, the top 1% of homes for sale nationwide have a median listing price of 5.5 million. dollars in January. Frank Nothaft, CoreLogic’s Chief Economist, pointed out that “Those who have done very well, who have kept their jobs and [who] saw the stock market explode, cashed in his earnings to use as a down payment to buy a second home. The study looked at the top 1% of homes based on price across major metropolitan areas.
The first market based on this measure is Kahului, Hawaii. The top 1% of homes by price has a median value of $23.9 million.
Here are the top 10 markets and the median value of the top 1% of homes:
- Kahului, Hawaii ($23.9 million)
- San Luis Obispo, CA ($40.0 million)
- Sebastian, Florida ($6.2 million)
- Hilton Head, SC ($5.5 million)
- Wilmington, North Carolina ($3.8 million)
- Barnstable, Mass. ($15.9 million)
- Austin, TX ($5.0 million)
- Portland, Me. ($4.9 million)
- Salt Lake City, Utah ($4.2 million)
- Prescott, Arizona ($5.7 million)
Click here to see which city has the most expensive homes in each state.