House prices rose by 5.1% in April, the Labor Department said Tuesday, and the economy added another 235,000 jobs.
Households bought more than $3 trillion worth of goods, furniture and other goods last month, according to the Bureau of Labor Statistics.
But a majority of that spending is going to households that own a home.
In the latest survey, 58% of Americans owned their homes.
According to the BLS, the median home price in April was $245,000, up 2.3% from the year before and the highest level since February 2016.
But some of the gains are being driven by wealthier buyers.
According to a report from the real estate site Trulia, the average price of a two-bedroom home in the San Francisco Bay Area rose by $4,200 in April to $1.7 million.
And a survey from the Federal Reserve Bank of St. Louis showed median home prices in major metropolitan areas rose 2.4% in the first quarter of this year.
While many are looking to buy bigger houses, some are looking for cheaper options, such as the flip flops.
“I bought this pair of flip flop flats and the price was $3,000,” one buyer wrote on a site called Home Shopping Network.
“I had to replace the tires and they still aren’t perfect, so they’re a little bit pricey.
I’m not sure I want to replace them because I’m still using them for a while.”
Another buyer on the site, a retired firefighter, said, “I love flip floors, but theres just not enough space for them, so I’m moving on to cheaper options.”
Many of the homes sold by home sellers on Trulia are located in the affluent Bay Area, which has one of the nation’s highest housing costs, according the National Association of Realtors.
The median home value in San Francisco is $2.732 million, according data from Trulia.
In San Jose, the city with the nation´s highest median home values, home prices rose 3.4%, according to Trulia data.
Many people in the Bay Area are moving to cities with lower median incomes, and this is likely contributing to the surge in home prices.
As we reported last month: “The median price for a house in San Jose was $1,973,000 in the third quarter, according to the Bay Street Journal.
In Santa Clara, median house prices rose 0.3%, according the Chronicle.
Meanwhile, in Oakland, the cheapest home in America was $6,000.
That’s in a district where median household income is $30,000 a year, and there are over 100,000 people in that district, the Journal reports.
The median house price in Santa Clara was $933,000 and the median price in Oakland was $770,000.”
The city of Santa Clara reported a drop in housing costs and median home income for the third straight quarter, which led to an increase in home sales, which helped fuel a 4.7% increase in the median value of all houses, according Trulia’s report.
Other Bay Area cities that reported declines in home values include Alameda, Palo Alto, San Francisco and Santa Cruz, according RealTrader.com.
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