Home sales in several major Western U.S. cities have surged, far outpacing the national average. In particular, Portland, Oregon, recorded a notable 27.6% increase in sales compared to the same period last year, making it the leader among the 50 largest metropolitan areas in the United States.
Following closely are West Coast cities such as San Jose, California (26.2%), Seattle (19.5%), San Francisco (17.7%), Sacramento, California (17.6%), and San Diego (15.2%). Across the country, home sales saw a much smaller increase of 4.8%, highlighting the distinct activity of these particular markets. Notably, these cities all have median sale prices exceeding the national median of approximately $430,107, which points to a concentrated demand despite higher costs.
A critical factor contributing to this surge in sales is the limited inventory available. In Portland, new listings decreased by 20.3% from the previous year, marking a sharper decline than any other metro area, barring Austin, Texas. Meanwhile, cities like Oakland, San Jose, and Sacramento also experienced larger-than-average drops in new listings.
According to Josh Felder, a real estate agent in the Bay Area, the lack of inventory means homes that meet buyers’ criteria are selling at a rapid pace and often receive multiple offers. Felder observed, ‘Even homes priced between $1 million and $3 million are attracting five to seven offers if they are move-in ready and situated in desirable neighborhoods with quality schools. They can sell for 10% to 14% above the asking price.’ This trend underscores the strong economic standing within regions such as Silicon Valley, where high-priced sales remain robust.
The Bay Area holds a special place in the housing market as one of the most expensive in the nation, encompassing three of the top five U.S. metro areas where homes are likely to sell over their asking price. In particular, San Jose leads with 58.6% of sales exceeding list prices—a figure only surpassed by Newark, New Jersey, at 64.8%. Additionally, in San Francisco, a similar trend sees 52.9% of homes selling above their list prices, a peak not observed since November 2021.
These developments reflect a broader pattern of increased early-stage homebuying activity across the U.S. following the election, but it’s especially pronounced in the West Coast’s pricier markets. While some might anticipate a limited pool of affluent buyers capable of sustaining these high prices, the reality suggests ongoing demand. Housing experts continue to monitor these shifts, especially as new listings across the nation have fallen by just 6.6%, a minor decrease in comparison to several West Coast cities.
While the nationwide real estate market displays moderate growth, the West Coast stands out with substantial increases in home sales, driven by limited supply and persistent demand. This pattern highlights the economic resilience of these high-cost regions, where even elevated prices do not deter buyer interest.
Source: Redfin
