America’s Most Splendid Real Estate Bubbles: July Update, Holy Moly

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America’s Most Splendid Real Estate Bubbles: July Update, Holy Moly


Raging maniacal real estate price inflation.

By Wolf Richter for WOLF STREET.

Home prices are up 16.6% from a year ago, with the largest increase in data going to 1987, according to the National Case-Shiller House Price Index today, which is the three-month moving average of transactions recorded in public records in March. , April and May. But in some cities, the raging housing craze has produced far crazier results. The subways here are listed in the order of the highest inflation in house prices since the year 2000:

Los Angeles Metro: Prices for single-family homes jumped 2.1% in May from April and 17.0% year-on-year. The Case-Shiller indices were set at 100 for January 2000. With the index value for Los Angeles at 347 in May, house prices have climbed 247% since January 2000, despite the Housing Bust in the middle, which makes Los Angeles the most splendid real estate bubble country on this list.

San Diego Metro: The Case-Shiller Index climbed 2.9% for the month and 24.7% year-on-year, the impersonation madness raging in the housing market. The year-over-year peak is the second hottest on this list, behind Phoenix. Prices in San Diego have climbed 241% since 2000:

Sizzling “house price inflation”. The Case-Shiller Index uses the “pair sales method”, comparing the current selling price of a home to its price when it was previously sold, and includes provisions for home improvement. . By tracking the dollar amount required to purchase the same house over time, the index measures the purchasing power of the dollar relative to houses; it is a measure of house price inflation.

All of the charts here are at the same scale as Los Angeles to show the relative warmth of house price inflation in each market since 2000.

Seattle Metro: House prices jumped 2.8% in May and 23.4% year-on-year, the third highest annual house price inflation on this list. Since January 2000, house prices have climbed 235%:

Homes and Condos in the San Francisco Bay Area: The Case-Shiller Index for “San Francisco” covers the five counties of San Francisco, San Mateo, Alameda, Contra Costa and Marin.

Overall, house prices rose 2.6% for the month, 18.2% year-on-year, and 218% since 2000. But by price level, “bottom tier” prices have increased by 20.2% year-on-year and are up 265% from January 2000 (black line). Mid-range prices jumped 22.1% year-on-year (light blue line); both far exceeded the top tier increase, up 17.1% year-on-year (green line).

Condominium prices, however, have been fluctuating since April 2018, without going anywhere. Here is my detailed look at this split in the San Francisco market. The condos are indicated by the red line.

Portland Metro: House prices climbed 2.4% for the month and 17.5% year-on-year, and are up 192% since 2000:

Miami Metro: House prices rose 2.4% for the month and 16.6% year-on-year. Prices have increased 187% since 2000:

New York subway, condos and houses by price points: This sprawling subway, which includes New York City and the counties of New York, New Jersey, and Connecticut states, has some of the most expensive pockets of housing in the United States, like Manhattan, but also much less expensive areas. dear.

Condo prices – heavily concentrated in New York, particularly Manhattan – remained stable over the month and have been at about the same level since February 2018. The highest was in October 2018 (red line).

Low-end home prices have skyrocketed since last summer and are up 20.0% year-over-year.

Prices for high-end homes have also increased recently and are up 14% year-on-year, after stagnating for three years (green line):

Washington DC Metro: House prices jumped 1.7% in May and 14.8% year-on-year:

Boston Metro: House prices jumped 1.4% for the month and 18.0% year-on-year.

Tampa Metro: House prices jumped 2.5% for the month and 18.0% year-on-year:

Denver Metro: House prices jumped 2.2% in May and 17.4% year-on-year:

The Phoenix subway, the furious madness illustrated: House prices soared 3.7% in May and 25.9% year-on-year, and annual house price inflation was the highest among the most splendid property bubbles here:

Las Vegas metro: House prices jumped 2.9% for the month and 15.5% year-on-year:

Dallas Metro: House prices climbed 2.9% for the month and 18.5% year-on-year. The index has increased 133% since 2000. In the remaining 20-city Case-Shiller index cities, house price inflation over two decades has been lower. While house prices in Los Angeles have jumped 247% since January 2000, and in Dallas by 133%, over the same period, the consumer price index, a third of which claims to cover housing, has increased by 61%.

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