There are now 550 US cities where the typical home value is $1 million or more

Housing prices are reaching their peak. Today, the average home price in 550 U.S. cities is over $1 million. Jiro report found.

Last year, 491 cities had median home prices above $1 million. The number of cities with high housing prices is increasing because the tight housing market is pushing up prices.

California has the largest number of metropolitan areas with million-dollar homes. In California he has a city worth $210 million, and next he has a city worth more than five states combined. New York was next, followed closely by New Jersey, which ranked 14th and became the most expensive city of all states. The only states that lost million-dollar cities were Florida, Texas, and Delaware.

The cities in the table below have the most expensive homes built in the country, and many of them are based in California.

Million-dollar cities generally follow trends in other housing markets. Like the housing market as a whole, the value of million-dollar homes has been increasing rapidly for some time.

“Affordability remains a big challenge for buyers, but that hasn’t stopped prices from rising,” said Anushna Prakash, economic research data scientist at Zillow.

The average home is worth 4.2% more than last year, and the average $1 million home is worth 4.6% more than a year ago.

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Luxury home prices are at an all-time high

Luxury home prices rose 9% in the first quarter, but that hasn’t stopped buyers from pursuing luxury homes. Redfin reported.

Luxury home sales increased by 2% even as non-luxury home sales decreased by 4%. High mortgage rates don’t have the same impact on luxury home buyers because many expensive homes are purchased with cash. According to Redfin research, nearly 50% of $1 million homes were purchased with cash earlier this year.

Sellers of luxury homes are less hesitant than other owners dealing with the rate-lock effect of high mortgage rates. According to Redfin, this contributed to a 13% increase in the supply of luxury homes, the largest increase on record.

Although the supply of luxury homes is increasing, it remains below pre-pandemic levels, which is why prices remain high. On average, luxury homes were sold for $ 1,225,000 in the first quarter.

“People who can afford to buy luxury homes are jumping in now because they’re confident prices will continue to rise,” explained David Palmer, a Redfin Premier agent in Seattle. “They are ready to buy with more optimism and less anxiety. There is a similar sentiment on the seller side. As prices for luxury homes continue to rise, homeowners are It feels like a good time to turn your assets into cash, even for mortgages, as interest rates are still rising and demand isn’t as high as it was during the pandemic, so many home buyers and sellers are experiencing the worst of it. I feel like the housing recession is over.”

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New construction work is decreasing

New home construction has suffered in recent years as homeowners held on to their existing homes due to high interest rates. However, new home construction fell by 14.7% in March. Realtor.com reported.

Housing starts in March were 4.3% below the previous year’s level. This is the first time since October that the number of new construction starts has decreased. Additionally, the number of newly constructed single-family homes and apartment complexes both decreased. Single-family housing starts fell 12.4% on a monthly basis, likely as interest rates continued to rise, scaring off buyers.

Although the number of new properties decreased month-on-month, it was still up 17.4% year-on-year, indicating that demand for new construction remains strong.

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