23 Cities Have 5-Yr Home Price Gains of 40%, Case-Shiller-20 Up 57% in 6 Yrs

-edited

Point2Homes notes 23 US cities had 40% or more home price appreciation in 5 yrs. I compare to Case-Shiller 20 metro area

Point2Homes notes 18 North American Cities Saw Home Prices Jump Over 50% in Just 5 Years

  • 18 of the 83 largest North American real estate markets saw home prices jump over 50% in just 5 years. Of the 18 markets with the most explosive growth, 11 are in the US, 6 in Canada, and 1 in Mexico.
  • Only 2 cities witnessed a drop in home price compared to 5 years ago, and both are located in Alberta, CA: Calgary and Edmonton.
  • San Francisco boasts the highest net increase of all the cities in the study ($550,000), followed by 2 Canadian cities: Vancouver ($417,913 CAD) and Surrey ($395, 287 CAD).

Top Ten North America Price Jumps

40% and Over Club USA

  1. Detroit, MI: 97% *
  2. San Francisco, CA: 69% *
  3. Seattle, WA: 66% *
  4. San Jose, CA: 58%
  5. Sacramento, CA: 56%
  6. Nashville, TN: 55%
  7. Bronx, NY: 54% **
  8. Columbus, OH: 53%
  9. Queens, NY: 52% **
  10. Brooklyn, NY: 52% **
  11. Fort Worth, TX: 52%
  12. Denver, CO: 50% *
  13. Las Vegas, NV: 48% *
  14. Milwaukee, WI: 48%
  15. Jacksonville, FL: 46%
  16. Portland, OR: 46% *
  17. Philadelphia, PA: 45%
  18. Boston, MA: 44% *
  19. Phoenix, AZ: 43% *
  20. Los Angeles, CA: 43% *
  21. Indianapolis, IN: 42% *
  22. Staten Island, NY: 41% **
  23. Charlotte, NC, 40% *

* Denotes member of Case-Shiller Top 20 Metro Areas by size, not price.

** Part of New York City which is in the Case-Shiller top 20.

12 cities in the above list (grouping the NY Burroughs as 1), are in the 40% or greater price appreciation group.

Case Shiller Top 20 Metro Areas

Atlanta, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis, New York, Phoenix, Portland, San Diego, San Francisco, Seattle, Tampa and Washington, D.C.

Case Shiller Top 20 Price Index

Methodology

Unlike Case-Shiller, Point2Homes factors in both new and existing home prices. Case-Shiller only looks at resales.

Sticker Shock

I will ask Point2Homes for an analysis of the Case-Shiller top 20 metro area from the March 2012 bottom to now, grouping NYC as a single entity.

Had ​Point2Homes gone back one more year, the price gains would have been even more incredible.

Mike "Mish" Shedlock

Comments
No. 1-11
stillCJ
stillCJ

Editor

Wow Detroit is up 97%! Looks like you would have to pay $1.97 for a home there now.

themonosynaptic
themonosynaptic

As far as I can determine, the Case-Shiller index does not take inflation into account.

To see the above chart inflation adjusted, look here:

Go down to the inflation adjusted chart, clear all the boxes except "USA" and all the hand-wringing disappears.

Put the left coast cities back in and all you see is that the economies of California and Washington State are kicking butt. The rest of the U.S. is just ticking along - no drama.

Also, if you could adjust for productivity gains, the U.S. numbers would flatline. All my life I've been told we are in a housing bubble, only once has it been accurate.

Looks like the rest of the country needs them some West Coast style Democratic leadership to get the economy going ;) [cue MAGA freak out]

shamrock
shamrock

Meanwhile, 5 year return on Gold is right around 0%. Which also, btw, failed once again to break out of its trading range.

Stuki
Stuki

In Idiotopia, the dupes are told to celebrate, when they get to pay more and more, for the exact same cellphones and shacks which were cheaper 5 years ago....... That's how they are told value is being created...

themonosynaptic
themonosynaptic

I don't know about where you live, but around me I watch new houses come on the market at ridiculous prices, then the prices of those houses stay level for about 5 years when the rest of the market catches up with them, then they get on the growth curve.

Thus, from my observations, new houses sell at a premium to the market for similar stock. In fact, the houses being built today are jammed together and on lots barely bigger than the footprint, and older houses have lots usually double the size.

I think that an unimproved 15-25 year old house is the best buy - the money you save on an improved house can be used to improve the house in the style you want.