If you talked to real estate analysts about 2017’s record-high home prices, they’d have told you things were getting interesting (i.e., scary). Early in the year, Trulia’s senior economist spoke of the impending “challenges for first-time buyers.” Meanwhile, First American’s chief economist spoke of “unsustainable” price hikes.
But they hadn’t seen anything yet. By the time November’s data arrived, it made the gains from early last year seem trivial. Three straight months of 7% gains, beginning in September ’17, pushed homes into “overvalued” territory. That distinction came from CoreLogic, which estimated 50% of real estate in the 50 largest metropolitan areas was currently overpriced.
That’s what people in the know call “a bubble.” If you live in a big U.S. city, you may never see prices this high until the next 10-year cycle. (The previous cycle ended in The Great Recession, circa 2008.) Here are 15 cities where it might be time to sell your home.
1. Washington, D.C.
When you look at the increases in home prices around the D.C. metro area, you might not think things were all that crazy. CoreLogic data showed a bump of 3.7% in the year leading up to November 2017. However, the already-high prices pushed the region into overvalued territory at the start of 2018. Parts of Maryland, Virginia, and West Virginia were included in the D.C. area for this analysis.
Next: Rocky Mountain High can be applied to the real estate market, too.
If you’ve considered selling your home in Denver, Aurora, or Lakewood, now would be the time. Between November 2016 and the end of 2017, prices jumped 8.1%. That figure represented the third highest gains of any U.S. city. Stacked on top of the market’s gain in recent years, that puts the Denver area on CoreLogic’s overvalued list. For a city Zillow says has a median home value of $389,000, the median listing price is $464,000.
Next: Experts may say it’s technically “at value,” but it’s a great time to sell.