Census Survey Reveals Hottest Housing Markets, Increases in Mortgage Costs
As recently reported, median home prices across the country are plumetting to near record-levels figures.
This is especially troublesome for owners considering the 32% rise in home values from 2000 to 2005. During those red hot five years, homes in San Diego fared even better than the national estimate, according to U.S. Census Bureau data released Tuesday.
The median home value for San Diego homes, adjusted for inflation, rose 127% (to $567,000 from $249,000), during the period. It was the largest increase among the country’s biggest cities, according to the Bureau’s American Community Survey, which covered 7,000 areas with a population of 65,000 or more.
Of the 15 largest cities surveyed, Los Angeles came in behind San Diego, with a median home value increase of 110%; followed by New York, with a rise of 79%. The accompanying chart depicts price appreciation across 15 major cities.
There were also 15 smaller cities surveyed. Leading the appreciation parade among these was Boynton Beach, Fla., with a real median home value increase of 120%; followed by Folsom, Calif. (100% boost); and Redondo Beach, Calif. (with a 92% gain).
“Just about anyone who owns a home or has been in the market for one in the past few years knows first-hand how home values jumped from 2000 to 2005,” said Census Bureau Director Louis Kincannon in a news release.
Perspective on recent declines
However, the data put recent headlines about home price declines into perspective, said Charles Jolly, president of the San Diego Association of Realtors and a Realtor for more than 30 years.
Real estate reports that focus on recent losses are “comparing everything to last year,” Jolly said. He said he’s seen his share of ups and downs in the market; the current state of affairs is just another part of a cycle.
Home Mortgage costs rise
The monthly cost of owning a home also rose during the first half of the decade, according to the survey. Homeowners’ median monthly cost - including mortgage payment and certain other costs, adjusted for inflation - rose 5%.
Among the largest cities, Detroit, Chicago and San Francisco experienced some of the greatest increases. The median monthly cost of mortgages rose 24% in Detroit, 22% in Chicago and 20% in San Francisco.