California is figuratively on fire, according to realtor.com’s “Advance Read on May Trends” report, which gives a glimpse into residential real estate inventory and demand trends over the first three weeks of the month. The company says that the May data indicates that housing demand remains strong and “continues to outpace supply even with some growth in inventory.”
Nationally, the median list price rose 1.0 percent in May over April, and 7.0 percent year over year, news that homeowners will relish. The median days on market is now at 66 days, down 11 percent year over year. Listings inventory levels are improving, up 4.0 percent over April, but remaining down compared to last year.
The nation’s 20 hottest real estate markets
Jonathan Smoke, realtor.com Chief Economist, ranks the nations 20 hottest real estate markets based on a real estate hotness index, which is composed of two indicators reflective of demand and supply: the number of views per listing on realtor.com and the median age of inventory in each market.
Four states are sitting pretty
Denver held on to the top spot, shaving six days off their median days on market, and they remain the fastest moving inventory in the nation.
California makes up half of the list of the hottest real estate markets, with San Francisco and San Jose holding on to the second and third spots, respectively. The report notes that “California markets rank highly because of tight supply and economic-powered growth in demand.”
Smoke tells Realuoso, “What we are seeing in California is a continuation of strong momentum that started first in the strongest job growth markets of San Francisco, San Jose, and Los Angeles but is now extending into the majority of markets in the state. Strong economic growth is supporting population and household growth, but with tight existing home inventories and limited expansion so far in new construction, demand is outstripping supply. That’s why we are seeing such high levels of listing views, low days on market for inventory, and substantial price appreciation. Higher prices should encourage more would-be sellers and more new construction in the months to come.”
But hang on, Texas, Colorado, and Michigan are representin’ with each offering two cities on the list. Economic-powered gains are driving these states, but realtor.com points out that Texas and Colorado is “more of a continuing saga and shows the resilience and diversified nature of the states’ economies despite the declines in oil. Michigan’s performance is related to economic recovery and very strong affordability.”