Unsurprisingly, California and New York dominated the list, accounting for just under 90% of the most expensive municipalities and the entire top five. For the average income household, it could take over 100 years to save up for a down payment in some Manhattan and Brooklyn locations, according to a separate study on New York neighborhoods from PropertyClub.
Overall home price gains trended up for most of 2019, with the latest 5.4% annual gain in October rising to a median value of $313,200, according to Redfin. This marked the largest year-over-year jump in 16 months.
“Low mortgage rates are propping up homebuyer demand and juicing prices,” Daryl Fairweather, Redfin chief economist said in a press release. “However, home sales have been slow to grow since there are so few homes for sale and not many new listings hitting the market, especially affordable ones. The market is split: It’s a seller’s market for moderately priced homes, but a buyer’s market for pricier homes.”
For the analysis, PropertyShark looked at residential sales closed between Jan. 1 and Nov. 5, 2019, inclusive of condos, co-ops, and single- and two-family homes. To make the list, ZIP codes needed to host at least three transactions in that time period.