Housing Market: A Record 550 Cities See Average Home Values Surpass $1 Million

The US housing market is witnessing a notable trend as a record 550 cities now have average home values surpassing $1 million. This indicates a growing challenge for many Americans to afford homes as prices continue to rise. According to a recent report by Zillow, the number of 'million-dollar' cities has risen to 550, up from 491 the previous year. California leads with the highest concentration of these cities, with New York and New Jersey also seeing considerable figures. The surge in home prices has been driven by high mortgage rates, discouraging homeowners from listing their properties for sale and causing a supply-demand imbalance. The Case-Shiller Home Price Index reported a record pace of home price growth in January, largely attributed to the tight housing market and fierce competition. However, there are signs of improvement in home affordability as existing home sales increased in February and a wave of new housing supply is in progress. Despite this, the median US home cost $349,216 in February, which exceeded the expected home value growth for the year. These developments underscore the challenges and dynamics at play in the current housing market.