Photo: Travis Wise/Flickr
US median home prices grew more at the start of 2018 than any year since 2005.
And the growth was so pronounced in San Jose, CA that its annual price appreciation was greater than the actual median home price in over half of the country’s 100 largest markets, according to the new March Mortgage Monitor released today by mortgage data and solutions provider Black Knight.
Nationally, the median home price rose 1.24 percent since the start of 2018, with both January and February having their strongest respective single-month growth rates in 13 years.
Since last year, national median home prices had risen an average of $18,000 by the end of February.
San Jose recorded the largest gains of all metros. The average home price rose by $226,000 year-over-year to $1.7 million completely eclipsing the $18,000 increase in the national median home price.
“By far, the heaviest areas of home price acceleration is San Jose. It has seen the rate of appreciation increase by 18 percent from just under 6 percent at the start of 2017 to a 24.1 percent annual rise in home prices as of February,” Black Knight Data & Analytics Executive Vice President Ben Graboske
San Jose recorded double-digit price growth from late 2012 through 2015 but then began to cool in 2016. It turned upwards again in early 2017.
And, with a 14.8 percent annual rate of growth, Las Vegas just surpassed Seattle, WA (14.6 percent) as the second-fastest appreciating market in the country.
Both San Jose and Las Vegas have recorded some of the highest rates of price acceleration over the past months, with the rate of acceleration averaging 7 times the national average.
But while Las Vegas prices are accelerating at a quickened pace, home prices are still 22 percent below pre-crisis peaks.
At the same time, the Las Vegas condo market is picking up steam.
The average Las Vegas condo is currently priced 20.9 percent higher than just a year ago — appreciating 14 percent faster the national condo average.
And although the median price of a high-end Vegas condo is currently appreciating at 12.4 percent per year — well above the national average — it is still 50 percent below the peak level recorded in 2006.
Meantime, nearly 60 percent of all metros saw an acceleration in the rate of price increases through February this year, further tightening affordability in 2018. And, another 40 percent of markets recorded some degree of deceleration.
Some 98 of the 100 largest markets and 97 percent of all markets recorded annual increases in home price appreciation at the start of this year.
“While almost all markets are seeing home prices rise, rates of appreciation vary across the country with the highest being seen in Western states,” Graboske says.
Over the last year, 11 markets have seen price gains of more than 10 percent — all 11 markets are located in the West.
Click here to read the entire release.