Remember when you thought a house worth one million dollars was an exorbitant price paid out only on decadent mansions by the extremely wealthy? Well, those days of thinking are gone and the seven-figure price tag is becoming a new normal in many of our country’s largest housing markets.
According to a report released by Trulia, million-dollar home listings in the U.S. have increased from 1.6% to 3% since 2012, with many of the larger metros seeing an even higher increase.
No surprise California sits at the top of the increase with seven of its cities holding a spot on the list of top 10 housing markets with the biggest increase in million dollar homes and cities in Hawaii, New York and Washington taking the remainder 3 spots.
With over half of homes (57%) valued over a million dollars, San Francisco has the most staggering and dramatic increase considering in 2012 these homes made up less than a fifth of the market. What’s even more astounding is the knowledge that this state is experiencing a housing crisis with ongoing affordability issues. Simple supply and demand may be what’s at play here, but until the growing problem is fixed, more and more low (and even middle) income households will be pushed out of the market.
[image courtesy of Trulia.com]