The Vallejo area fell two points in September and is now the third hottest housing market in the United States.
Vallejo-Fairfield was ranked No. 3 on Realtor.com’s list of Top 20 Hottest Real Estate Markets in its September data preview. It was overtaken by the San Jose-Sunnyvale-Santa Clara, and the San Francisco-Oakland-Hayward areas, which moved into the No. 1 and No. 2 spots, respectively.
Realtor.com Chief Economist Danielle Hale, says home shoppers here should find this a nice change of pace.
“In spite of giving up the hottest market slot in September, Vallejo-Fairfield continues to be a relatively affordable and hot Northern California market, she said. “Demand remains very strong in the market. With 2.5 times more page views per listing than the U.S. average, Vallejo-Fairfield does better than any other top-10 market on this measure in September.”
Supply, as measured by the pace of home sales in the Solano County market, actually increased, Hale said.
“This slower pace of sales relative to recent months is welcome relief to home shoppers in the market, and suggests some cooling,” she said. “Still, homes are selling fast. With a median of 38 days on market, only three markets in the top 20 and six markets in the top 300 are selling faster than they do in Vallejo-Fairfield. Home shoppers should enjoy this respite from the frenzy.”
Elsewhere in the country, Realtor.com’s latest report shows prices remained high in September while inventory continued dropping.
September data shows the immediate impact of Hurricanes Harvey and Irene to the Houston and Miami housing markets, with views of Miami homes falling to -25 percent in September, down significantly from its 14 percent growth rate in August. Things were similar in Houston, where views fell 4 percent compared to a 21 percent growth rate in August.
New data shows the U.S. median home list price in September was $274,000 — 10 percent higher than one year ago and near its historical peak of $275,000, reached earlier this summer. For sale inventory also continues to be in short supply, with homes moving 10 percent more quickly than in September 2016. The median age of for-sale listings on Realtor.com in September is 69 days, indicating that sales are happening eight days faster than this time last year — despite double-digit price growth, Realtor.com officials said.
“While the steadiness in prices from August to September is on par with what we’ve seen in the last few years, other indicators show what a tough market buyers are facing,” Hale said. “Both the number of homes coming on the market and the amount of time they take to sell are lower than we typically see in the fall season, while listing views per property continue to rise.”
Solano Association of Realtors President Linda Daraskavich said the finding aren’t a big surprise.
“I think that part of the reason for the drop from No. 1 market is the fact that there is a little more inventory than there has been in quite a while,” she said. “And first time home buyers purchasing FHA are now out priced in our market. People looking to purchase homes in San Francisco and Silicon Valley have much higher incomes, have 25 percent or more to put down, qualify for much more house or pay cash.”
The seasonal ebb in the number of home listings has started, falling 1 percent since August, Hale said. “Inventory remains substantially lower than a year ago, down 9 percent compared to last September,” she said. “Approximately 430,000 new listings hit the market in September, a 2 percent decrease over last year, further exacerbating market tightness.”
For the complete report, go to https://www.realtor.com/news/trends/americas-20-hottest-markets-real-estate-september-2017/