Residential real estate markets in the United States have been analyzed by National Association of Realtors (NAR). The NAR has provided statistics to almost all of the United States' Metropolitan Statistics Areas (MSAs). The numbers were then crunched to understand its implications. The 49 MSAs were ranked as per the average sales achieved during the first quarter of 2018. These statistics were valid for existing single-family homes. It follows that new residences were willfully excluded from the study.
Change from 2017
There has been a perceptible change in the order from the first quarter of 2017 when compared with the 2018 first quarter. This is applicable for all the 49 cities. It is known that labor markets thrive in the southern part of the United States. It is to be noted that notwithstanding the high employment in the south, the west is the place where the residential real estate markets are booming. This is evident by a glance at the statistics.
It is seen that the 2018 first quarter witnessed single-family homes enjoying Year-Over-Year (YOY) percentage price rises in the double digits. This is seen in 14 American MSAs. The first six spots were taken by cities located in the West. One state- California- singly accounted for four super high price rises. The first one was San Jose. The city realty shot up 28.3 percent. The city is followed by San Francisco, Los Angeles, and Sacramento shooting up 12.5 percent, 12.3 percent, and 11.0 percent respectively.
This does not mean the West does not have hot markets. The top three cities where YOY resale home contracts reached considerable highs include Seattle, Salt Lake City, and Las Vegas with 14.8 percent, 13.1 percent, and 12.4 percent respectively. The top 14 metropolises have three South cities- Atlanta (11.9 percent), Jacksonville (11.9 percent), and Orlando (10.9 percent). Three cities have come up from the Midwest -Minneapolis (11.0 percent), Indianapolis (10.6 percent), and Kansas City (10.4 percent). It is to be noted that the Northeast United States did not figure in the top-ranked list. Buffalo, NY came near at 9.9 percent.
Conversely, Philadelphia was the only big American city to suffer a decline when it comes to average resale prices of single-family homes during the first quarter of 2018. It suffered a downfall of -5.8 percent. The West thus clearly dominates, with nine cities occupying the most expensive category in the United States.