California continues to top the charts in real estate.
California dominated the nation’s top 20 hottest real estate markets for May 2016, claiming half of the most popular real estate markets. Four out of five of the most active real estate markets are from California, with Vallejo topping the charts this month.
Asking prices for homes hit record highs in May, and homes flew off the market as fast as we’ve seen since the housing recovery began. The median home price for May is about 9% higher than it was one year ago, and 2% higher than in April.
Pent-up demand and low mortgage rates are driving consumers into the market with urgency, however, the recurring issue of limited supply is leading to higher prices. Although more than 550,000 listings have been added to the market so far in May (a 4% increase), the level of inventory is still 4% lower than it was last year.
Looking at the median days on market and the number of views per listing, we can identify the hottest real estate markets among the country’s medium to large metropolitan areas. In these metro areas – which may include several nearby communities – buyers are motivated and homes sell quickly. While California has topped the charts for several months now, we’re starting to see a few surprises and more variety.