The most expensive places to buy a house

From coast to coast, the housing market has had a record run as a shortage of supply pushes values ​​higher. The national median house price eclipsed $400,000 in May 2022, its first time above that mark, according to the National Association of Realtors.

In some of the country’s most exclusive housing markets, however, $400,000 would hardly be considered a down payment. Bankrate looked at city-by-city sales data compiled by ATTOM Data Solutions to identify the most expensive municipalities in the country, in the first quarter of 2022. Unsurprisingly, California markets dominate the ranking.

Top 10 Most Expensive Cities for Homebuyers

The list of most expensive places is dominated by small towns in California, with riverside enclaves on the East Coast also making their mark. Here are the top 10 cities overall, with the Q1 median price for each:

1. Atherton, California: $10.05 million. This Silicon Valley town is the most expensive place in the United States to buy a home, by far. Prices soared nearly 43% between the first quarter of 2021 and the first quarter of 2022, according to ATTOM Data Solutions.
2. Watermill, New York: $6.24 million. Prices in this Hamptons enclave have nearly doubled over the past year.
3. Portola Valley, California: $5 million. Another municipality in Silicon Valley, this city has seen prices increase by 42% in one year.
4. Boca Grande, Florida: $4.4 million. The housing market in this small Gulf Coast village is dominated by waterfront homes. The median price in this town near Fort Myers has more than doubled.
5. Los Altos, California: $4.3 million. Also in Silicon Valley, prices have jumped 42% in one year.
6. Rancho Santa Fe, California: $4.29 million. The highest-ranked participant in Southern California, this expensive suburb of San Diego saw a 57% appreciation.
7. Newport Coast, California: $4.1 million. According to ATTOM, this prestigious Orange County location has seen prices soar 49% in one year.
8. Sea Island, Georgia: $4.09 million. This small resort town on the Georgian coast has seen a 50% price hike.
9. Medina, Washington: $3.8 million. In an anomaly among the top 10, this Seattle suburb was the only place that saw a drop in prices from Q1 2021 to Q1 2022.
10. Bridgehampton, New York: $3.7 million. This Hamptons town offers more affordable homes than the nearby Watermill, but still ranks in our top 10.

Most Expensive Mid-Size Markets

The five most expensive places with populations of 50,000 to 500,000, with median prices in the first quarter:

1. Palo Alto, California: $2.95 million. Continuing Silicon Valley’s dominance on the list, this tech-heavy city was No. 1, although prices only rose 10% in one year.
2. Newport Beach, California: $2.64 million. Prices in this Southern California community have soared 26%.
3. Cupertino, California: $2.38 million. The median selling price in this tech hub, known for housing Apple’s headquarters, has risen 18% over the past year.
4. Danville, California: $2.08 million. This Northern California city isn’t in Silicon Valley, it’s inside Oakland.
5. Redwood City, California: $2.01 million. Yet another Silicon Valley entrant, this city has seen 22% growth.

The most expensive large markets

The five most expensive places with a population of 500,000 or more, with median prices in the first quarter:

1. Manhattan: $1.66 million. No surprise here: New York, and Manhattan in particular, has always been one of the most expensive real estate markets in the country. However, prices only increased by 10% compared to the previous year.
2. San Francisco: $1.45 million. This is another moderate growth market – prices have increased by 9%.
3. San Jose: $1.3 million. The fastest gainer among major cities, the capital of Silicon Valley saw a 21% price increase.
4. Los Angeles: $1 million. Prices are only up 4%, but LA remains expensive, prohibitively expensive for Angelenos earning local wages. It is one of the least affordable places in the country.
5. Brooklyn: $900,576. Still cheaper than Manhattan, but this New York borough’s reputation for affordable housing is fast fading.

Here is ATTOM’s full set of America’s 25 Most Expensive Real Estate Markets:

1	Atherton	California	7,415	$10,050,000	42.7%
2	water Mill	New York	1,679	$6,241,666	95.1%
3	Portola Valley	California	7,125	$5,000,000	42.5%
4	Boca Grande	Florida	813	$4,400,000	118.9%
5	Los Altos	California	43,081	$4,300,000	25.2%
6	Rancho Santa Fe	California	9,037	$4,288,500	57.4%
seven	Newport Coast	California	9,802	$4,100,000	49.3%
8	sea ​​island	Georgia	47	$4,094,556	49.9%
9	Medina	Washington	3,267	$3,812,500	-0.9%
ten	Bridgehampton	New York	1,120	$3,717,913	50.6%
11	Burlingame	California	42,760	$3,550,000	29.0%
12	beverly hills	California	40,647	$3,505,000	16.8%
13	Saratoga	California	31,196	$3,500,000	19.3%
14	Pacific Palisades	California	21,629	$3,391,750	6.7%
15	Corona Del Mar	California	12,394	$3,275,000	18.6%
16	pebble beach	California	4,028	$3,250,000	18.3%
17	Del Mar	California	13,568	$3,225,000	108.1%
18	Tiburon Belvedere	California	12,740	$3,157,500	20.4%
19	Avalon	New Jersey	1,527	$3,102,820	60.8%
20	malibu	California	19,792	$3,000,000	26.7%
21	Palo Alto	California	96 113	$2,950,000	10.2%
22	manhattan beach	California	35,500	$2,930,000	4.0%
23	Laguna Beach	California	24,800	$2,912,500	30.7%
24	Menlo Park	California	43,392	$2,900,000	17.6%
25	Alamo	California	15 105	$2,722,500	23.8%

Affordability tips for homebuyers

If you’re worried you’ll never be able to afford a home, don’t despair. There are strategies that can help buyers deal with this record market:

Shop for a mortgage

Rates are volatile right now and fees vary widely from lender to lender. Comparing at least three offers from competing lenders can save you thousands of dollars over the term of the mortgage.

Look for a low down payment loan

For borrowers struggling to afford a home, the monthly payment is just one hurdle. Another comes with a down payment. With a typical American home selling for around $400,000, making a standard 20% down payment means writing a check for $80,000. There is, however, a potential workaround in the form of mortgages backed by the Federal Housing Administration and the US Department of Veterans Affairs. FHA loans and VA loans have less onerous restrictions than conventional loans, if you qualify. FHA loans have a minimum 3.5% down payment and VA loans require no down payment.

Consider a repairman

Older homes can be a good compromise for buyers frustrated by lack of inventory and skyrocketing prices. In Bankrate’s survey earlier this year, 21% of respondents said they would try this tactic. Of course, buying a repairman means you’re taking on a project, and that brings uncertainty. No matter how careful you are in estimating your renovation budget, you can count on surprises, especially in a time when material costs are skyrocketing and construction labor is scarce. Renovation experts say you should plan for cost overruns in the range of 15-20% of your construction budget.

Consider a more affordable neighborhood

Many buyers are faced with the harsh reality that they cannot afford the area they really want. Some buyers decide to move away from the most difficult markets, such as those listed above. However, a number of major metropolitan areas are still showing affordable real estate prices. They include Buffalo (with a median selling price of $202,300 in the first quarter), Philadelphia ($297,900), Louisville ($235,400), St. Louis ($216,700), Kansas City ($287,400) and Milwaukee ($298,800).