Ten more housing markets have entered the “peak club.” In these metro areas, home prices are higher now than ever before. The list includes Denver, Nashville, Raleigh, San Jose, and six other metros.
Crisis schmisis. The housing collapse that sent U.S. home prices plummeting a few years ago is a distant memory in the 10 housing markets below. According to a recent report from RealtyTrac, home prices in these metro areas reached new peaks in July 2015. That means house values in these markets have never been higher than they are right now, not even during the housing bubble.
It’s a small club, too. RealtyTrac examined sales prices for 161 local housing markets across the country. Only 10 of those markets hit new peaks in July. In all, that puts the total number of U.S. metro areas with new price peaks at 20%, when you include 2014 and 2015. So nearly a quarter of the country has risen to new heights, at least where home prices are concerned.
10 Housing Markets Hitting Price Peaks in July 2015
Without further ado, here is the complete list of housing markets where home prices rose to unprecedented heights in July 2015:
|Metro Area||July 2015 Median Sales Price|
|San Jose-Sunnyvale-Santa Clara, CA||$822,000|
|Omaha-Council Bluffs, NE-IA||$168,000|
|Colorado Springs, CO||$215,000|
|Burlington-South Burlington, VT||$253,500|
Home sales are also climbing to new heights. According to data published recently, U.S. home sales volume is now at an eight-year high. We’re seeing more traditional buyers in the market as well, and fewer all-cash investor types.
According to Daren Blomquist, vice president at RealtyTrac:
“…housing is successfully transitioning from an investor-driven recovery to one that is drawing in traditional buyers as a good foundation for sustainable growth going forward.”
Denver Home Prices Rising Like the Rockies
The real estate market in Denver, Colorado — one of the metro areas in the price peak club above — has been in the news a lot lately. Home prices in the area have been rising steadily, and significantly, for several years now.
House values in the Denver area rose to pre-recession levels back in 2013, and they’ve been continuing upward ever since.
It’s a supply and demand thing. There are many buyers in the market, but not enough homes listed for sale. This is driving home prices north. Prices in Denver have risen so quickly, in fact, that it has many analysts using the ‘B’ word … bubble. (Just Google “Denver housing bubble” and you’ll see what I mean.)
San Jose Sixth “Hottest” Real Estate Market in U.S.
San Jose, California is another hot real estate market with rapidly rising home prices. House values in the area rose to an all-time high point in July 2015. Properties are selling so fast in San Jose that Realtor.com ranked it #6 on its list of the “20 hottest U.S. real estate markets.”
Here again, there’s a supply-and-demand imbalance driving home prices upward. According to Realtor.com, the total number of homes listed for sale in San Jose has declined by nearly 40% over the last year or so. Home buyers today have fewer options to choose from, which leads to fierce competition, multiple offers, and — in some cases — even bidding wars.
Raleigh Economy Brings Buyers Into the Market
The real estate market in Raleigh, North Carolina is also experiencing a shortage of homes for sale, relative to demand. Realtor.com reports a 34% decline in total listings over the last year.
On the demand side, the area’s strong economy is putting more people in a position to buy a home. The unemployment rate for the Raleigh-Carey metro area has been hovering below 5% for most of 2015 (though it rose slightly this summer), and remains well below the national average.
This region has always enjoyed a strong job market, thanks in part to the financial services industry and the “Research Triangle.” This brings more buyers into the Raleigh housing market, fueling demand and bolstering home prices.