San Jose Becomes First U.S. City With Average Home Price Over $1 Million

For the first time ever, the National Association of Realtors has registered a metro area with an average home price over $1 million and, wouldn’t you know, it’s right here in our backyards.

According to the group, the average home price in San Jose, Calif. is now $1,085,000.

Did your stomach just do a backflip?

Indeed, housing prices are up nationwide. Year-over-year, the average price of a single-family home has increase 4.9 percent to a national average of $240,700. During the second quarter, home prices rose in 83 percent of the 178 metro areas the NAR tracks.

NAR Chief Economist Lawrence Yun said the numbers reflect the shortage of homes being built. That’s a phenomenon we’ve been covering at length at both California City and County News.

Read more about San Jose’s pricier-than-ever housing market here.

Image Credit: Flickr User 120360673@N04, via (CC BY-SA 2.0)