Home prices in America have soared over the past two years. The carefully followed S&P CoreLogic Case-Shiller Index showed that home prices rose 20.6% nationwide in March, the fastest pace since the index was created. In some cities, the rise was closer to 30%.
What has happened to drive these increases? Among other things, mortgage rates that were below 3% for a 30-fixed rate loan. Those days are over though, as mortgage rates now have surged to above 5%.
Americans became more mobile because the pandemic offered more opportunity to work from home. Many left expensive coastal cities for less expensive cities inland. Real estate prices in cities like New York and San Francisco can be more than twice the national average.
To determine the city with the most expensive homes, 24/7 Wall St. reviewed data from Realtor.com’s Monthly Housing Trends Report. In the report, the 50 largest metropolitan areas in the United States were ranked based on the median home listing price in May 2022.
Home prices have continued to increase nationwide, even as demand has cooled in the wake of higher prices and mortgage rates. Demand for homes is still high coming off the heels of the COVID-19 pandemic, but such high list prices may be dissuading some potential buyers from entering the market, while higher interest rates are pushing some buyers out of the market.
Many of the places with the most expensive homes are also among the largest metro areas in the country. These population centers offer access to high-paying jobs, good schools and entertainment and dining options, making them attractive places to live and driving up home costs.
The metropolitan area with the most expensive homes is San Jose-Sunnyvale-Santa Clara, California. Here are the details:
- Median list price, May 2022: $1,494,000
- Annual increase in median list price: +15.1% (22nd highest)
- Median days on market: 17 (eighth fewest)
- Population: 1,985,926
Click here to see all the cities with the most expensive homes in America.
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.