Home values have been rising for six straight years, and the gains have been accelerating for the past two years. Unlike the last housing boom, the gains are not driven by fast and easy mortgage money, but instead by solid buyer demand and very low supply. Still, like the last housing boom, some are starting to warn these price gains cannot continue.
“The continuing run-up in home prices above the pace of income growth is simply not sustainable,” wrote Lawrence Yun, chief economist for the National Association of Realtors. “From the cyclical low point in home prices six years ago, a typical home price has increased by 48 percent while the average wage rate has grown by only 14 percent.”
Santa Clara County’s single family median home price in 2012 was $635,000 as compared to $1,400,000 today. Santa Cruz County’s single family median home price in 2012 was $500,900 as compared to $869,000 today. San Mateo County’s single family median home price in 2012 was $735,000 as compared to $1,600,000 today.
As in the past, Redfin attests that Sacramento is the city San Franciscans peruse most often, with Seattle, Washington remaining the most common out of state prospect.
The biggest beneficiary of California fallout, according to Trulia: Las Vegas, Nevada, where 8.1 percent of fleeing Golden Staters end up, followed by New York City at 7.3 percent. Phoenix, Arizona came in third on the list at seven percent even with Dallas, Texas moving into fourth place at 5.5 percent. Seattle rounded out the top five at 5.1 percent.
However, Trulia does caution, “The data captures job-to-job moves specifically and may not capture the full picture of migration”.