Remote work gave folks the freedom to live where they wanted – no more daily commutes, no more being stuck in a city just because the office was there. But now, companies are calling people back and that’s changing everything. People are moving closer to work again and the housing market in some cities is going wild.

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Take San Jose. It’s always been tough to find a home there, but now? It’s crazy. Buyers are fighting over the few homes available and paying way above the asking price. According to a Realtor.com analysis of 75 cities to see where homes sell the most over their asking prices, San Jose tops the list in the U.S., with homes selling 6.2% over the asking price. And get this – the median home price is a staggering $1.3 million.

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So, why is this happening? Well, San Jose is right near Silicon Valley. Big tech companies like PayPal and Adobe are there, pulling in tech pros from everywhere. Housing demand is through the roof. Lex Orosco, a real estate broker at Real Silicon Valley, told Business Insider that the market will only get hotter as more people move closer to work. And as interest rates drop, even more buyers will jump in, pushing prices higher.

It’s not just San Jose, though. Other cities, especially in the Northeast and California, see the same thing. Hannah Jones from Realtor.com said many of these places are “within commuting distance of the region’s major economic hubs.” With companies moving back to in-office or hybrid setups, these areas are feeling the pressure, too.

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Look at San Francisco – homes are selling for 3.6% above asking. Hartford, Connecticut? Buyers are paying 4.8% more than the list price. Even Kansas City is getting hit, with homes going for 4.3% over asking.

And the recent interest rate cut by the Federal Reserve? It will lower mortgage rates, giving more people the power to buy. But with so few homes out there, prices might climb even more. Orosco thinks we might see more homes hit the market as rates fall, but it won’t be enough to cool things down.

As companies drag workers back to the office, cities like San Jose feel the heat. More people moving back means more competition for homes – and higher prices. It’s already tight and the return to office life is making it even tighter.

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