The San Jose-Santa Clara County metro area had a median home price of more than $1 million during the second quarter of the year. It’s the first metro area in the country where the median price of a home is seven figures.
The National Association of Realtors reported the Silicon Valley median home price was $1,085,000 during the second quarter. San Francisco was the second-most expensive market with an $885,600 median price. It was followed by Anaheim-Santa Ana ($742,200), urban Honolulu ($725,200) and San Diego $589,900. The metro area with the lowest median home price was Youngstown, Ohio and surrounding areas at $85,400.
Nationally, the median price of a home during the second quarter was $240,700. That was up 4.9% from a year ago ($229,400). Furthermore, home prices increased in 83% of the measured markets, which was down slightly from Q1.
While the Silicon Valley median home price soared, N.A.R. Chief Economist Lawrence Yun noted home sales were brisk all across the country during the second quarter. However, he also added it could have been better if not for “meager supply levels and home prices in many areas moving too fast.”
Still, led largely by repeat buyers either scaling up or scaling down, home sales were up 4.2% from a year earlier.
“Steadily improving local job markets and mortgage rates teetering close to all-time lows brought buyers out in force in many large and middle-tier cities,” Yun said. “However, with homebuilding activity still failing to keep up with demand and not enough current homeowners putting their home up for sale, prices continued their strong ascent–and in many markets at a rate well above income growth.”
Helped by the lack of inventory, homes were on the market for only a month on average and over 40% of listing sold at or above their list price. That’s the highest share since N.A.R has been tracking that metric.