![]() ![]() Will home prices keep going down in Denver? Jonathan Lansner is business columnist for the Southern California News Group.Not only did houses sit, but I saw prices drop from the mid $500’s down into the low $400’s. Thus, greater job losses and economic pain.Īnd these modest price increases also suggest that any perceived rush to cheaper housing by people with the pandemic era’s work-from-anywhere freedoms was, at best, less than envisioned.īut let me suggest one positive for the low-price communities their housing’s nowhere as frothy as their higher-priced neighbors. Many of these economies are more blue-collar oriented or tourism-dependent - not work-from-home friendly. Meanwhile, low-cost metros saw meager home appreciation. So these home seekers used the low rates to help super-heat prices in many already expensive markets. Being an owner in the nation’s costliest regions has forever required a household with one or more secure, good-paying careers and significant savings for downpayments. That started almost immediately when coronavirus iced the economy in spring 2020 and still exists today.īut this price-gain analysis suggests the greatest appreciation came in places where folks didn’t badly need that kind of financial help. These paychecks were relatively steady in an otherwise erratic pandemic economy.Īdd in cheap money as a key financial tool deployed to keep housing afloat. That type of work easily morphed into the pandemic’s key employment niche - remote jobs. Most of the nation’s priciest metro areas have long been expensive because they’re home to an oversized number of high-paying office jobs. Just another example of how misguided is the nation’s housing bailout for the coronavirus-chilled economy. On a scale of zero bubbles (no bubble here) to five bubbles (five-alarm warning) … FIVE BUBBLES! pace - Austin, up 51%, the nation’s third-biggest jump.īy the way, 44% of the rest of the metros had gains topping 28%. But just one of 11 Texas metros beat the U.S. San Francisco had the largest jump (up 40% to $1.35 million) then the Inland Empire (up 38% to $524,000) Orange County (up 33% to $1.1 million) San Jose (up 33% to $1.65 million) Los Angeles (up 33% to $860,900) Sacramento (up 32% to $512,000) San Diego (up 32% to $850,000) and Fresno (up 31% to $375,000).įlorida had 16 of its 19 metros with above-par price increases. Note the price gap, top 20% to bottom 20%, grew to $364,800 from $258,250 - a 41% jump! Another viewĪll eight California markets in this list topped the 28% all-metro median gain. That 22% gain ranged from 5% (Shreveport, La.) to 36% (Cumberland, Md.) This group had only 11% of its metros beating the U.S. pace.Ĭheapest: The nation’s “bargains” had a $183,550 median, up from $150,300 two years earlier. That 25% gain ranged from 16% (Abilene, Texas) to 38% (Ocala, Fla.) This group had 36% of its metros beating the U.S. Next cheapest: This slice’s $232,400 median was up from $185,250 two years earlier. No slice had a bigger share of above-par increases. In this group, 92% of the price gains topped the 28% gain seen across all 182 metro areas. Price jumps ranged from 25% (Washington, DC) to 59% (Boise, Idaho). Upper Crust: The priciest fifth had a $548,350 median, up from $408,550 two years earlier - a gain of 34%, the largest increase of these five slices. ![]() You see another example of how the rich got richer in the pandemic era when the nation’s housing markets are sliced into five groups based on pricing - with a handful of exceptions … The Trendĭespite much chatter about a supposed exodus of residents from big, expensive housing markets in the pandemic era, metro areas ranked in the top 20% of all selling prices had a median two-year price gain of 34% - better than a 26% median gain for the rest of the nation. Source: My trusty spreadsheet’s analysis of data from the National Association of Realtors of third-quarter median selling prices for existing, single-family homes for 182 metropolitan areas - looking at the latest median prices and how they’ve changed from two years ago. “ Bubble Watch” digs into trends that may indicate economic and/or housing market troubles ahead.īuzz: The housing market’s buying binge has largely inflated prices in what were already some of the nation’s most-expensive metropolitan areas. ![]()
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