California has 6 of the most-valuable housing markets in US

California is home to a half-dozen of the most valuable housing markets in the country.

According to Zillow, the total value of US housing has risen more than $2.6 trillion in the last year to just under $52 trillion, up $1.1 trillion from the previous peak in June 2022.

These gains defy expectations that higher borrowing costs would result in a prolonged slump. Low supply, combined with the lock-in effect, which has made current mortgage borrowers reluctant to give up their low-cost loans, has pushed nationwide prices to a new high. The increase in the sum of Zillow’s estimated value for every US home was linked to a 0.7% increase in the average price as well as an increase in new construction.

Six California markets topped the metro area rankings…

• Los Angeles-Orange County: No. 2 in the United States with $3.7 trillion, an increase of $3 billion or 0.1% since the June 2022 housing peak.
• San Francisco ranks third with $1.8 trillion, a drop of $176 billion or 9% since June 2022.
• San Diego ranks ninth with $994 billion, an increase of $10 billion or 1% since June 2022.
• San Jose: No. 11 with a market capitalization of $909 billion, down $50 billion or 5% since June 2022.
• Riverside is ranked 14th, with a market capitalization of $785 billion, a decrease of $25 billion or 3% since June 2022.
• Sacramento ranks 19th with $482 billion, a decrease of $27 billion or 5% since June 2022.

The Florida real estate boom has propelled Miami to the fifth-largest metropolitan housing market, up from ninth in May 2021, and surpassing the nation’s capital, Washington, DC, among others.

Miami home values have increased by more than 80% since the pandemic began, as have properties in Tampa and Jacksonville. Orlando has increased by more than 70%. According to Zillow, one of the reasons Florida prices have risen so quickly is the state’s significant population growth.

According to Zillow, Florida has surpassed New York to become the second most valuable US housing market.

The gains have not been distributed evenly across the country. Prices in California, which accounts for roughly one-fifth of the US housing market, have been declining since June 2022. However, the value of residential property in Florida has increased by $159 billion during that time, vaulting the Sunshine State ahead of New York in the national rankings.

“Despite the presence of higher mortgage rates, which deterred some home shoppers and kept many existing homeowners on the sidelines, enough buyers remained to keep the market moving,” Orphe Divounguy, a senior economist at Zillow, wrote.

The top five states are…

• California: $10 trillion, down $344 billion or 3% since the housing peak in June 2022.
• Florida: $3.8 trillion, an increase of $159 billion, or 4%, since June 2022.
• New York: $3.7 trillion, a $9 million or 0.2% decrease since June 2022.
• Texas: $3.4 trillion, an increase of $50 million, or 1.5%, since June 2022.
• New Jersey: $1.8 trillion, up $213 million or 13% since June 2022.