Home prices are rising quickly, especially in cities like San Francisco, where buyers find themselves locked in bidding wars that end with a home being sold for more than the asking price.
Prices around the country are climbing even faster than Zillow predicted. The company forecasted that April prices would jump by 2%, but, in fact, they jumped nearly 5%, according to Zillow’s home-value index.
The store across the country is the same, with bidding wars and a strong demand from homebuyers and tight inventories. Zillow chief economist Svenja Gudell noted in a report on Tuesday, “The struggle will continue for home shoppers this summer.”
Gudell added, “In many markets, those looking to buy a home in the bottom or middle of the market will need to be prepared for bidding wars and homes selling for over the asking price.”
With home prices rising like they are, it can be more difficult for first-time homebuyers to compete with other potential owners for the house they want. In particular, the houses at the bottom or middle of the market are scarce. High-end homes are also tight, but not nearly as much.
Based on Zillow’s data, here are 18 cities where home prices are insane right now.
#1 – Denver, Colorado
Zillow Home Value Index: $336,600
Denver has the highest year on year (YoY) home value change on this list at 15.2%. The percent inventory change for all homes was 0.1%. The inventory change is positive for bottom-tier, middle-tier, and condos in the mile high city.
#2 – Portland, Oregon
Zillow Home Value Index: $325,400
Portland, Oregon’s YoY home value change is 15.1% and its percent inventory change for all homes is -31.6%. The steepest decrease in inventory was condos at -43.5%.