Monday Market Update: National Home Price Appreciation Update
15 markets experienced double-digit price appreciation (none are in California!)
Just a few days ago, the National Association of Realtors(NAR)® released a report of the metro areas with the largest gains in home prices as of Q3 2024. While you may assume that California topped the charts, none of our markets made the list. Here’s why:
It’s true that 8 out of the 10 most expensive markets in the US are in the Golden State; however, the gains here were NOT in double digits as seen in the markets below.
Per the NAR® Newsroom: “Eight of the top 10 most expensive markets in the U.S. were in California. Overall, those markets were San Jose-Sunnyvale-Santa Clara, Calif. ($1,900,000; 2.7%); Anaheim-Santa Ana-Irvine, Calif. ($1,398,500; 7.2%); San Francisco-Oakland-Hayward, Calif. ($1,309,000; 0.7%); Urban Honolulu, Hawaii ($1,138,000; 7.2%); San Diego-Carlsbad, Calif. ($1,010,000; 3.2%); Salinas, Calif. ($959,800; 1.5%); San Luis Obispo-Paso Robles, Calif. ($949,800; 6.7%); Los Angeles-Long Beach-Glendale, Calif. ($947,500; 5.6%); Oxnard-Thousand Oaks-Ventura, Calif. ($947,400; 2.8%); and Boulder, Colo. ($832,200; -3.0%)
The purpose of sharing this information is to help readers differentiate between areas with high home prices, and areas with high home price gains. It is critical to assess the trends of the market you are buying in, and to note regional differences in the timing of when home prices surges happen. On a very general note, the West often sees home price gains earlier in the year than other regions, thus our gains are not as notable in the last two quarters of the year. Does that mean prices dropped in our markets? Or that a bubble has burst? Also, no – it simply means that home price gains vary greatly within micro markets AND across major metros.
NAR Chief Economist Lawrence Yun summarizes: “Housing affordability has been a challenge, but the worst appears to be over. Rising wages are outpacing home price increases. Despite some short-term swings, mortgage rates are set to stabilize below last year’s levels. More inventory is reaching the market and providing additional options for consumers.”
We hope this data helps you see the big picture of where housing landed in 2024, and what price trends to watch in 2025.
All my best,
Bobbi
Bobbi Decker
DRE#00607999
Broker Associate, Bobbi Decker & Associates
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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