April 2018 Real Estate Market Report
Home Values Climbing at Fastest Rate in 12 Years
The median U.S. home value rose 8.7 percent to $215,600 in April, the fastest year-over-year climb since June 2006, when the housing market was slowing from its bubble-driven, double-digit growth. By September 2007, the median home value had begun to decrease.
By contrast, the current gain is part of a general upward trend that started in early 2015, when values were climbing at less than 5 percent year-over-year. They picked up steam that summer and, aside from occasional pauses and slight declines, have not looked back.
Among major markets, San Jose, Calif., led year-over-year home value growth in April, with its median rocketing 26.2 percent to $1.26 million. Las Vegas had the second fastest growing median home value, but for an opposite reason: While San Jose is a pricey coastal hub with home values driven by well-paid tech workers, Las Vegas continues to climb back from the recession. Its median home value gained 16.5 percent in April to $260,800 – but is still not at its pre-recession (2006) peak of $316,800.
Seattle rounded out the top three markets for median home value growth, gaining 13.6 percent in April to $490,000.
The slowest growth among major markets was in Baltimore, where the median home value increased 4.4 percent year-over-year to $262,700. Washington, D.C., climbed 4.5 percent to $398,900, and the Houston gained 4.7 percent to $195,500.
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Four of Five Priciest Rental Markets Are on the West Coast
Median U.S. rent grew by 2.5 percent year-over-year to $1,449 a month in April. It’s been growing by more than 2 percent since September 2017.
Sacramento and Riverside, Calif., led growth among the country’s largest metro areas. Each posted 7 percent year-over-year growth in April to reach $1,853 (Sacramento) and $1,894 (Riverside). Las Vegas saw the third-fastest growth, climbing 4.5 percent to $1,305.
The four priciest large rental markets are on the West Coast: San Jose, Calif. ($3,529), San Francisco ($3,425), Los Angeles ($2,759) and San Diego ($2,549). The fifth, New York, has a median rent of $2,401 a month.
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