Home prices have risen to record highs in 43 of the 121 metropolitan areas (and metro divisions) with at least a half-million people in 2015, according to the latest FHFA home price index and reported by economist Jed Kolko.
However, Kolko explains, home prices typically rise over time due to general inflation, which alone would cause prices to reach new record highs. By removing inflation costs, only seven of the 121 largest metros have real home prices now at record highs:
These record-setting metros all have booming housing markets today or had a very mild housing bust last decade, or — in the case of Austin — both. In a few other metros, real home prices are within 5% of their record highs but not quite there, including Durham-Chapel Hill, Houston, and San Jose.