By Allison McNeely
The percentage of U.S. homes worth at least $1 million has nearly doubled from before the pandemic as a sizzling housing market shows no sign of cooling.
A record 8.2% of U.S. homes were worth at least seven figures in February, up from 4.8% two years earlier, according to a new report from listings site Redfin Corp. Anaheim, California, saw the biggest increase in homes worth at least $1 million, nearly doubling to 55.3%. California represented seven of the top 10 cities with the biggest share of seven-figure houses, with Honolulu, Seattle and New York rounding out the rest, according to the report.
Anaheim has experienced a severe housing shortage, which helped push prices higher, Redfin said. The number of homes for sale in the city dropped 42.5% year over year in January, one of the biggest declines among metropolitan areas analyzed.
“House hunters in Anaheim are regularly competing with dozens of other people,” Redfin agent Linda Tessitore said in a statement. “Low mortgage rates and a lack of inventory are the main factors driving the surge in bidding wars and prices.”
Record home prices and multiple offers have become the norm in many U.S. cities due to strong demand from young families and remote workers looking to relocate. January was the most competitive month ever in the U.S. while high-end inventory continues to evaporate.
San Francisco had the highest rate of million-dollar homes at 88.7%, followed by San Jose at 85.9% and Anaheim, according to Redfin. The median sale price for San Francisco and San Jose was $1.4 million in January.
Towns with the fewest number of homes over $1 million include Elgin, Illinois, at 0.1% of the total. El Paso, Texas and Columbia, South Carolina had 0.2% of homes in the million-dollar range.
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