Dive Brief:
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The most expensive U.S. zip codes in 2016 were in New York, Florida and California, according to an annual list compiled by Forbes. Manalapan, FL, took the No. 1 spot, with a median home price of $7.8 million.
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New York snagged six of the top 10 spots on the list, with Manhattan’s Upper East Side neighborhood at No. 2 with a median price of $7.2 million. The sudden price growth in that zip code — up from $2.5 million this year — concerns a few expensive townhouse sales. New York’s overall performance reflects an influx of properties coming onto the market, particularly in Manhattan.
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The list highlights an easing in California’s booming property market, with the state accounting for three of the top 10 spots this year compared to four last year. Two of those zip codes are in Silicon Valley. Atherton, CA, for example, topped the list for the past three years but fell to third in 2016, with homes there commanding a median price tag of $7.2 million compared to $10.6 million last year.
Dive Insight:
The housing market has continued to experience healthy price gains this year as the volume of homes for sale has failed to keep pace with pent-up demand
Overall, U.S. home prices jumped up 1.1% from September to October and were up 6.7% year over year, according to the latest CoreLogic Home Price Index.
Prices are expected to continue moving higher into 2017, but at a slightly slower rate as more inventory becomes available and base mortgage interest rates rise.
There are also growing concerns that an expected increase in the benchmark interest rate by the Federal Reserve before the year-end could further impact growth in the sector.
Some areas of the country are already showing signs of a wobble, with the Forbes list pointing to the slowdown in the ultra-luxury property markets in Silicon Valley and New York City, where high-priced homes aren’t commanding the attention and competitive bids they did a year ago.
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