In this article, we will be covering the overall US real estate market, some of the prominent market trends, and the 20 US metros with the highest median list prices. If you wish to skip our detailed analysis, you can move directly to the 5 US Metros with the Highest Median List Prices.
The US Real Estate Sector Overview
The 2024 housing market in the United States appears to be making a recovery after sluggish trends related to high home prices, affordability issues, soaring mortgage rates, and a shortage of inventory. While homebuyers could not access ample housing options, existing homeowners held onto their homes during a period of increasing interest rates. As reported by Realtor, consumer confidence as recorded in January has experienced a year-over-year increase. Simultaneously, the number of new listings has increased since 2023. The number of homes actively for sale was 14.8% higher in February than during the same period in 2023. Although the new home supply has grown, many homeowners still feel reluctant to sell their homes which has constrained the supply of existing homes in the country. Overall, US housing affordability has improved since the mortgage rates appear to be cooling down in 2024, after falling significantly in 2022 and 2023.
For the first quarter of 2024, better affordability and easing interest rates have been forecasted to drive the real estate market growth in the United States. The spring season is expected to offer bright prospects by introducing a larger supply of cheaper houses to homebuyers. Even if this supply doesn’t match the pre-pandemic statistics, it still brings options for those buyers who were constantly pushed out of the market in 2023.
Current Real Estate Trends
As reported by the National Association of Realtors, more than 85% of the US metros witnessed increases in home prices in the fourth quarter of 2023. California accounted for eight out of the ten most expensive housing markets in the US. You can take a look at the most overpriced housing markets in America in 2023 to have a better idea of the national housing market. However, the overall home price growth slowed as 2024 commenced. The US median home price rose from $409,500 in January to $415,500 in February. It has been forecasted that the home prices will follow the same trend of starting lower and then increasing with warming weather. However, experts think that other than the seasonal effect, home prices will be stable this year.
Region-wise, active listings grew substantially in large Southern metros. This led to an extended availability of houses priced between $200,000 and $350,000. Among other metros, Orlando, Miami, and Tampa recorded the highest increases in the number of homes for sale. On the other hand, the housing inventory declined in the large Western and Northeastern metros during February.
As compared to the rest of the US, the South also has more affordable listings. The region accounts for more than half of the country’s available inventory in the $200,000 to $350,000 price range. Even as the median home prices in metros such as Tampa and Miami are higher, their supply of homes in the affordable range increased in February. Most of these homes tend to be condos, townhomes, and row houses. Dallas, San Antonio, and Houston are other metros with a higher inventory of homes in an affordable price range. Some of the cheapest places to buy a house in every state have been previously covered.
Leading Homebuilders in the US
Some of the largest homebuilders in the US including KB Home (NYSE:KBH), LGI Homes, Inc. (NASDAQ:LGIH), and Beazer Homes USA, Inc. (NYSE:BZH) enable diverse homebuyers to settle in desirable locations across the nation. Let’s review some of the recent initiatives from these firms in their housing businesses.
KB Home (NYSE: KBH) is a known homebuilder in the US. The company focuses on building personal relationships with customers by building homes according to their budget. On March 1, KB Home (NYSE: KBH) reported the grand opening of its new community in San Jacinto, California. Residents can enjoy numerous shopping, dining, and entertainment options in the area. Diamond Valley Lake and Idyllwild can also be easily accessed while staying in the new community. The new homes have been priced from the $490,000s.
LGI Homes, Inc. (NASDAQ:LGIH) is another home construction company that operates across 36 markets in 21 states. The firm has successfully constructed and sold more than 65,000 homes in the past. On March 4, LGI Homes, Inc. (NASDAQ:LGIH) reported that its luxury brand Terrata Homes has initiated selling homes in its new community in Seattle, Washington. The community ‘Skyway Village’ offers multiple family-friendly amenities including a children’s playground and open green spaces. Residents can also visit Renton, Bellevue, and downtown Seattle. Pricing for the new homes at Skyway Village begins from the $970,000s.
Beazer Homes (NYSE:BZH) is engaged in building homes in multiple states including Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia. On March 8, the company reported another step demonstrating its commitment to building energy-efficient homes. The firm announced the launch of its Energy Series READY homes across all Southern California area communities. Homes from Beazer Homes (NYSE:BZH) are built to offer improved air quality, greater energy conservation, and an overall healthier living.
Now that we have navigated through the US real estate market, let’s move to the 20 US metros with the highest median list prices.
20 US Metros with the Highest Median List Prices
Our Methodology:
In order to compile a list of the 20 US metros with the highest median list prices, we sourced data from Realtor.com. Using the metro-level data, we acquired the median list prices, as of December 2023, and ranked the 20 US metros with the highest median list prices in ascending order.
20 US Metros with the Highest Median List Prices
20. Steamboat Springs, Colorado
Median List Price: $940,000
As recorded in December 2023, the median list price in Steamboat Springs is $940,000. The price climbed 4.6% year-over-year and ranks the metro among other US metros with the highest median list prices.
19. Santa Rosa, California
Median List Price: $969,990
Santa Rosa is another metro with a high median list price. The median list price in the metro was recorded at $969,990 in December 2023. The year-over-year increase in this price was reported to be 7.8%.
18. San Diego-Carlsbad, CA
Median List Price: $980,000
The median list price in San Diego-Carlsbad was $980,000 in December 2023 and experienced a year-over-year increase of 9.0%. Hence, San Diego-Carlsbad is another metro with a high median list price.
17. San Francisco-Oakland et al, California
Median List Price: $998,000
San Francisco-Oakland et al ranks among US metros with the highest median list prices. As recorded in December 2023, the median list price in the metro was $998,000 and went up by 0.5% year-over-year.
16. San Luis Obispo et al, California
Median List Price: $999,000
The median list price in San Luis Obispo et al is high. The year-over-year rise in the median list price of the metro was 4.7% as recorded in December 2023.
15. Oxnard-Thousand Oaks-Ventura, California
Median List Price: $1,049,000
As reported by Realtor, the median list price in Oxnard-Thousand Oaks-Ventura was $1,049,000 in December 2023. This price increased by 20.4% year-over-year.
14. Breckenridge, Colorado
Median List Price: $1,100,000
Breckenridge boasts a median list price of $1,100,000 which is relatively high. However, the median list price in the metro went down by 9.8% year-over-year.
13. Los Angeles-Long Beach et al, California
Median List Price: $1,100,000
As recorded in December 2023, Los Angeles-Long Beach et al has a median list price of $1,100,000. A year-over-year rise of 17.7% was recorded in this median list price.
12. Santa Cruz-Watsonville, California
Median List Price: $1,182,000
The median list price in Santa Cruz-Watsonville is $1,182,000 which ranks the metro among other metros with high median list prices. This price decreased by 12.1% year-over-year.
11. Salinas, California
Median List Price: $1,196,500
Salinas is another US metro where the median list price is high. As recorded in December 2023, the median list price in the metro was $1,196,500 and experienced a year-over-year increase of 26.7%.
10. Bozeman, Montana
Median List Price: $1,197,000
With a year-over-year increase of 19.8%, the median list price in Bozeman was recorded at $1,197,000. This ranks the metro among other metros with high median list prices.
9. Edwards, Colorado
Median List Price: $1,250,000
As reported in December 2023, the median list price in Edwards went up by 13.6% year-over-year. Edwards is another US metro with a high median price of $1,250,000.
8. San Jose-Sunnyvale et al, California
Median List Price: $1,298,944
Although the median list price in San Jose-Sunnyvale et al reduced by 7.1% year-over-year, the metro has a high median list price. This price was recorded at $1,298,944 in December 2023.
7. Jackson, Wyoming-Idaho
Median List Price: $1,335,000
Jackson is another metro with a high median list price but this price declined by 21.5% year-over-year as recorded in December 2023.
6. Key West, Florida
Median List Price: $1,392,500
In December 2023, Key West had a median list price of $1,392,500. This price went up by 3.2% year-over-year. Hene, Key West is one of the 20 US metros with the highest median list prices.
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Disclosure: None. 20 US Metros with the Highest Median List Prices is originally published on Insider Monkey.
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