Top 25 New-Home Price Hikes in 2014

Why aren’t new homes selling? It’s because home prices are simply too high. Affordability is keeping entry-level home buyers at bay. The “sticker shock” many are experiencing while shopping for a new-home is enabling high development traffic, but the conversion rate into buyers remains low. Among the many metros experiencing high price appreciation, several markets jumped out with dramatic year-over-year price spikes from the first quarter of 2013 to the first quarter of 2014. BUILDER ranks the top hikes in median price by percentage growth, first weeding out those submarkets with fewer than 100 total new-home closings in the two quarters analyzed. The results show strong demand in baby boomer retiree markets and that home buyers in California are in need of a second gold rush. Here are the top 25 new-home price hikes.

1. Madison, Wis.

Closings 1Q13: 126 Median Price: $258,600

Closings 1Q14: 112 Median Price: $306,500

Percent Change in Price: 41.96%

2. Eugene, Ore.

Closings 1Q13: 56 Median Price: $215,900

Closing 1Q14: 52 Median Price: $287,500

Percent Change in Price: 39.09%

3. San Francisco-Oakland-Hayward, Calif.

Closings 1Q13: 795 Median Price: $530,600

Closing 1Q14: 783 Median Price: $730,100

Percent Change in Price: 37.60%

4. Santa Maria-Santa Barbara, Calif.

Closings 1Q13: 59 Median Price: $362,500

Closing 1Q14: 66 Median Price: $497,500

Percent Change in Price: 37.24%

5. Boulder, Colo.

Closings 1Q13: 111 Median Price: $327,300

Closing 1Q14: 84 Median Price: $433,300

Percent Change in Price: 32.39%

6. Honolulu

Closings 1Q13: 322 Median Price: $409,400

Closing 1Q14: 164 Median Price: $536,200

Percent Change in Price: 30.97%

7. Naples-Immokalee-Marco Island, Fla.

Closings 1Q13: 204 Median Price: $336,400

Closing 1Q14: 374 Median Price: $440,500

Percent Change in Price: 30.95%

8. Panama City, Fla.

Closings 1Q13: 59 Median Price: $220,600

Closing 1Q14: 47 Median Price: $278,300

Percent Change in Price: 26.10%

9. Daphne-Fairhope-Foley, Ala.

Closings 1Q13: 131 Median Price: $209,000

Closing 1Q14: 207 Median Price: $263,000

Percent Change in Price: 25.84%

10. Las Vegas-Henderson-Paradise, Nev.

Closings 1Q13: 1,694 Median Price: $229,500

Closing 1Q14: 1,116 Median Price: $287,400

Percent Change in Price: 25.23%

11. Stockton-Lodi, Calif.

Closings 1Q13: 219 Median Price: $318,100

Closing 1Q14: 178 Median Price: $397,700

Percent Change in Price: 25.02%

12. Los Angeles-Long Beach-Anaheim, Calif.

Closings 1Q13: 1,178 Median Price: $572,600

Closing 1Q14: 1,401 Median Price: $708,700

Percent Change in Price: 23.77%

13. Louisville/Jefferson County, Ken.-Ind.

Closings 1Q13: 154 Median Price: $240,700

Closing 1Q14: 152 Median Price:$296,200

Percent Change in Price: 23.06%

14. Bakersfield, Calif.

Closings 1Q13: 359 Median Price: $230,700

Closing 1Q14: 269 Median Price: $283,400

Percent Change in Price: 22.84%

15. Orlando-Kissimmee-Sanford, Fla.

Closings 1Q13: 1,514 Median Price: $216,000

Closing 1Q14: 1,774 Median Price: $264,400

Percent Change in Price: 22.41%

16. Sacramento—Roseville—Arden-Arcade, Calif.

Closings 1Q13: 649 Median Price: $314,600

Closing 1Q14: 527 Median Price: $384,400

Percent Change in Price: 22.19%

17. Manchester-Nashua, N.H.

Closings 1Q13: 51 Median Price: $275,000

Closing 1Q14: 49 Median Price: $335,400

Percent Change in Price: 21.96%

18. Durham-Chapel Hill, N.C.

Closings 1Q13: 340 Median Price: $233,600

Closing 1Q14: 313 Median Price: $282,000

Percent Change in Price: 20.72%

19. Reno, Nev.

Closings 1Q13: 172 Median Price: $275,000

Closing 1Q14: 239 Median Price: $331,800

Percent Change in Price: 20.65%

20. Riverside-San Bernardino-Ontario, Calif.

Closings 1Q13: 1,268 Median Price: $325,600

Closing 1Q14: 1,058 Median Price: $392,100

Percent Change in Price: 20.42%

21. Bismarck, N.D.

Closings 1Q13: 69 Median Price: $222,400

Closing 1Q14: 66 Median Price: $266,700

Percent Change in Price: 19.92%

22. North Port-Sarasota-Bradenton, Fla.

Closings 1Q13: 595 Median Price: $228,000

Closing 1Q14: 709 Median Price: $273,400

Percent Change in Price: 19.91%

23. Seattle-Tacoma-Bellevue, Wash.

Closings 1Q13: 1,728 Median Price: $329,500

Closing 1Q14: 1,451 Median Price: $394,200

Percent Change in Price: 19.64%

24. Birmingham-Hoover, Ala.

Closings 1Q13: 123 Median Price: $209,800

Closing 1Q14: 84 Median Price: $250,000

Percent Change in Price: 19.16%

25. Knoxville, Tenn.

Closings 1Q13: 123 Median Price: $201,900

Closing 1Q14: 133 Median Price: $239,700

Percent Change in Price: 18.72%