Rising sales and home prices typically coincide with each other. That was not the case in the final three months of 2015.
Despite slightly cooling demand from earlier in the year that caused sales to decline (5.4 percent) from the third quarter, single-family home prices picked up speed and showed continued strength in nearly all metro areas (81 percent) to close out the year.
Why? Depressed supply levels in relation to the overall pool of prospective buyers continues to lift upward pressure on home prices in several metro areas. The end result is that even in some of the top job producing, but costliest parts of the country (I’m talking to you West Coast and parts of the South), homeownership remains out of reach for many qualified buyers.
The five most expensive housing markets in the fourth quarter were San Jose, Calif., $940,000; San Francisco, $781,600; Honolulu, $716,600; Anaheim-Santa Ana, Calif., $708,700; and San Diego, $546,800.
Which metro areas experienced the fastest price appreciation? Check out the top 30 markets in the chart below:
Copyright NATIONAL ASSOCIATION OF REALTORS®. Reprinted with permission.