Home prices are hitting record highs, and homes are moving off the market 2% more quickly than last year says Realtor.com writer Cicely Wedgeworth. New data from the website pinpointed the nation's hottest markets this month, and the markets where things were starting to see a slight slowdown.
California took the hottest markets list by storm with seven metros ranking in the top ten markets. Vallejo, Calif., came in at number one, followed by San Francisco (No. 2), Stockton (No. 4), San Diego (No. 5), Santa Rosa (No. 6), Sacramento (No. 8), and Modesto (No. 9).
“In June, for the first time that I can recall, the hottest real estate markets saw inventory movement slow down, while the rest of the country saw inventory speed up,” says Jonathan Smoke, chief economist of Realtor.com in the article. “We’ve essentially seen how low the age of inventory can go.”
Realtor.com identified the "hottest" markets as those with the most views per listing and the quickest inventory movement. These areas had homes selling 20 to 38 days faster than the rest of the U.S.
For-sale housing inventory is increasing on a monthly basis as is typical of the season, but total inventory remains lower than one year ago. An estimated 525,000 new listings are expected to come onto the market by the end of the month—a 3% increase over May—but that number will fall short of quenching existing demand—as evidenced by the higher prices. Compared with June 2015, listing inventory fell 5%. Meanwhile, the median home list price was $252,000, 8% higher than one year ago and 1% higher than last month. However, much of the effect of higher prices is being offset by mortgage rates that are the lowest we’ve seen in three years, Smoke notes.