U.S. Home Prices Reach a New Record High: Here are the Most Expensive Cities

The prices of homes across the United States have reached new peak prices. Even though there are higher interest rates for mortgages, home prices have risen just as much as regular daily items in our of daily lives have become more expensive.

Many potential homebuyers have become discouraged; however, there are many that simply don't have a choice because their rents have gotten out of control, they are relocating for work or to be with family or simply for the fact that they've waited so many years already and its time to start building equity in their own home instead of paying for someone else's mortgage.

Across the United States, the prices of homes has risen approximately 6.5 percent each year, according to the S&P CoreLogic Case-Shiller Home Price Index.

Both stocks and real estate have increased in value. For those who have been renting, they are missing the boat. This is especially true if the individual or family has been renting for many years and has kept putting off the notion of buying.  While they have waited, prices have increased, rates have increased and its become more challenging to qualify for a mortgage.  

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Here's where home appreciation has been occurring the fastest.

From various metropolitan areas being reviewed across the United States, San Diego posted the largest gain with over an 11% increase in home prices in the past year.

Other cities were New York with over a 9% increase, Cleveland with a 8% increase and Los Angeles also with a 8% increase.

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Two other west coast cities are San Francisco and Seattle which are approximately 9% and 8% in terms of annual home price appreciation.

At the bottom of the list were cities such as Denver and Portland 

Will home prices continue to rise?

Various economists have continued to enforce that home prices will continue to rise. The annual rate could be a bit slower than what we have witnessed, but with the amount of people who still need and want their own home, there is a great demand. Mortgage rates will most likely tend to come down a bit over the next few years and there will also be more homes built in the upcoming quarters. Inventory is still somewhat limited and all of these factors push in the direction of home appreciation.

If you're considering purchasing a home, find out the state loan limits here.