218 Cities with $1M-Plus in Home Values
Zillow is reporting there are now 218 U.S. cities with a typical home value of at least $1 million, up by three localities over the past year. Seven cities earned the $1 million distinction during 2019: Santa Ynez, Calif.; Telluride, Colo.; Forest Hills, Tenn.; Sierra Madre, Calif.; McLean, Va.; Moose, Wyo.; and Redondo Beach, Calif. However, four cities on the list experienced property depreciation and fell off of the list: San Jose, Calif.; San Quentin, Calif.; Lexington Hills, Calif.; and Laie, Hawaii. This marked the first year since 2016 in which any cities fell off the $1 million list as home values declined in some expensive areas after a period of extreme price growth. However, the concentration of these million-dollar cities relatively limited. More than half of the cities are based in only three metros: 46 in San Francisco, 43 in New York City and 30 in Los Angeles. Other metro areas with million-dollar cities include Boston (10), San Jose (10) and Miami (7). “Odd though it may seem, it’s the cities at the top that are ‘struggling’ the most during this return to normalcy in the market,” said Skylar Olsen, Zillow’s director of economic research. “More than just slower growth, home values good and truly fell in many of these hubs of luxury, a sign that the excessive home value appreciation of the past several years drove prices too high—even beyond the reach of those who could afford almost anything almost anywhere else.”
Posted on nationalmortgageprofessional.com on 1/14/2020.