Home Prices Still Rising & Eight of the Top 10 Markets in the U.S. are in California

More than 9 in 10 metro markets posted home price gains in the first quarter of 2024, according to the National Association of REALTORS®’ latest quarterly report. Of the 221 metro areas tracked, 30% experienced double-digit price gains, up from 15% in the fourth quarter of 2023.

During the same period, the 30-year fixed mortgage rate ranged from 6.60% to 6.94%.

“Astonishingly, greater than 90% of the country’s metro areas experienced home price growth despite facing the highest mortgage rates in two decades,” says NAR Chief Economist Lawrence Yun. “In the current market, rising prices are the direct result of insufficient housing supply not meeting the full demand.”

Eight of the top 10 most expensive markets in the U.S. were in California. Those markets, and their year-over-year gains, were:

  • San Jose-Sunnyvale-Santa Clara, Calif. ($1,840,000; 13.7%)
  • Anaheim-Santa Ana-Irvine, Calif. ($1,365,000; 14.2%)
  • San Francisco-Oakland-Hayward, Calif. ($1,300,000; 14%)
  • Urban Honolulu, Hawaii ($1,085,800; 5.5%)
  • San Diego-Carlsbad, Calif. ($981,000; 11.5%)
  • San Luis Obispo-Paso Robles, Calif. ($909,300; 7%)
  • Oxnard-Thousand Oaks-Ventura, Calif. ($908,700; 7.6%)
  • Salinas, Calif. ($899,200; 4.1%)
  • Naples-Immokalee-Marco Island, Fla. ($850,000; 9.4%)
  • Los Angeles-Long Beach-Glendale, Calif. ($823,000; 10.2%)

“The expensive markets in the West, where home prices declined last year, are roaring back,” Yun says. “Price dips in that region were viewed as second-chance opportunities by many buyers.”

Meanwhile, six of the 10 metro areas with the largest year-over-year median price increases were in Illinois and Wisconsin. The top 10 were:

  • Fond du Lac, Wis. (23.7%)
  • Kankakee, Ill. (22.0%)
  • Rockford, Ill. (20.1%)
  • Champaign-Urbana, Ill. (20.0%)
  • Johnson City, Tenn. (19.3%)
  • Racine, Wis. (19.0%)
  • Newark, N.J.-Pa. (18.8%)
  • Bloomington, Ill. (18.5%)
  • New York-Jersey City-White Plains, N.Y.-N.J. (18.4%)
  • Cumberland, Md.-W.Va. (18.2%)