Home prices are continuing to surge upward, this time at their fastest rate in over 12 months. Prices have been posting modest growth in the past several years, but that growth has exploded in recent months. According to Zillow’s market report for April 2018, the median home value in the U.S. jumped 8.7% year-over-year.
Extremely hot markets like San Jose, Las Vegas, and Seattle reported extraordinary price growth in the double digits. Home values in San Jose skyrocketed up 26.2% in April, more than tripling the tremendous national growth figures for the month. Las Vegas and Seattle posted annual growth of 16.5% and 13.7%, respectively.
- The median U.S. home value jumped 8.7% year-over-year to $215,600 in April, the fastest annual growth since June 2006
- San Jose home values exploded in April with 26.2% growth, dwarfing the tremendous national average growth for the month
- Baltimore, Washington D.C., and Houston home values lagged in April with less than 5% growth each
The median U.S. home value rose 8.7 percent to $215,600 in April, the fastest year-over-year climb since June 2006, when the housing market was slowing from its bubble-driven, double-digit growth. By September 2007, the median home value had begun to decrease.
By contrast, the current gain is part of a general upward trend that started in early 2015, when values were climbing at less than 5 percent year-over-year. They picked up steam that summer and, aside from occasional pauses and slight declines, have not looked back.
Among major markets, San Jose, Calif., led year-over-year home value growth in April, with its median rocketing 26.2 percent to $1.26 million. Las Vegas had the second fastest growing median home value, but for an opposite reason: While San Jose is a pricey coastal hub with home values driven by well-paid tech workers, Las Vegas continues to climb back from the recession. Its median home value gained 16.5 percent in April to $260,800 – but is still not at its pre-recession (2006) peak of $316,800.
Seattle rounded out the top three markets for median home value growth, gaining 13.6 percent in April to $490,000.
The slowest growth among major markets was in Baltimore, where the median home value increased 4.4 percent year-over-year to $262,700. Washington, D.C., climbed 4.5 percent to $398,900, and the Houston gained 4.7 percent to $195,500.
View the original article at Zillow Research