That was the eye-grabbing, milestone figure highlighted in today’s NAR research release of second quarter metro home prices. For the first time ever, a metro area – San Jose, California – had a median single-family home price above $1 million.
For the rest of the country the theme of robust price growth continued. Single-family home prices remained on their unfettered ascent in most measured markets (83 percent) as meager supply levels ran up prices and dented affordability.
According to Lawrence Yun, NAR chief economist, “Steadily improving local job markets and mortgage rates teetering close to all-time lows brought buyers out in force in many large and middle-tier cities,” he said. “However, with homebuilding activity still failing to keep up with demand and not enough current homeowners putting their home up for sale, prices continued their strong ascent – and in many markets at a rate well above income growth.”
Just how much did a quickening pace of home sales amidst inadequate inventory push up prices in the second quarter? Many large and middle-tier cities saw gains at a rates above income growth.
Check out the the single-family price increases in the notable cities below.