In these metro areas, housing prices are rising, and homes with a ‘for sale’ sign are getting snatched up in no time, according to Realtor.com.
When homes are put up for sale in Oakland, they don’t last long. In February, houses were on the market for an average of just two weeks before they were sold, according to Realtor.com.
As a result, they often attract multiple offers and sell for more than the asking price, according to Leslie Appleton-Young, chief economist for the California Association of Realtors.
The housing supply is tight, thanks to real estate investors who make up about 20% of Oakland’s market. These days, most investors keep the homes and rent them out, rather than fixing them up and trying to resell like they used to. “Investors don’t flip anymore,” Appleton-Young said.
Despite the competition for homes, prices are still down more than a third from their mid-2006 peak.
Sacramento, California
Median listing price: $279,900
Like Oakland, homes in California’s capital are being snapped up quickly, with the average listing lasting only three weeks.
“When houses come on to the market, it’s a feeding frenzy,” said Stephanie Baker, a local Coldwell Banker real estate agent.
That demand has helped push area home prices 40% higher in the past 12 months, she said.
All price points are strong. Many first-time homebuyers have entered the market, freeing up sellers of entry-level homes to purchase bigger, more expensive houses.
Now, even the high-end of the market is making a comeback. A colleague of Baker’s just closed on a $2 million home. “That was the first one in years,” she said.
Stockton, California
Stockton, Calif., was hit hard by the housing bust, and many people lost their homes to foreclosure.
But now, “[t]he foreclosure pipeline is drying up,” said Leslie Appleton-Young, chief economist for the California Association of Realtors.
While bank-owned properties still account for more than half of all sales, it’s a vast improvement from the first years of the bust when they accounted for 80% or more, she said.
The shift means that house hunters won’t find quite the bargains of a few years ago, and listing prices are up more than 16% in the past 12 months.
“The market still has a long way to go, but it’s healing,” she said.
San Jose, California
Silicon Valley’s big tech profits have helped keep home prices — and demand — strong in the San Jose metro area over the past year.
“There’s a lot of cash in the Valley,” said Carl San Miguel, president of the Santa Clara County Association of Realtors. “About 10% of offers are all cash, and most of the others are big down payments, 40% to 60% cash.”
The median listing price of homes in San Jose rose nearly 29% to $607,000 over the past 12 months.
And supply is very limited. The area has one of the smallest inventories of unsold homes in the country, down more than 56% from February 2012, according to Realtor.com.
Denver, Colorado
Denver’s real estate market remained fairly stable during the housing boom and bust years. Home prices took a comparatively small hit and have since been on the rise, climbing 8% over the past 12 months, according to Realtor.com.
“It’s one of the first ‘normal markets’ where you’re seeing this kind of upside,” said Errol Samuelson, president of Realtor.com. “That’s a good sign for the overall housing market.”
Now, the prospect of an oil boom in the area has boosted demand for homes even further. Homes are generally sold in less than a month.
For sellers, there is little competition. “The active listing level is the lowest since 1998,” said Michael Welk, a spokesman for the Colorado Association of Realtors.
Article from: CNNMoney
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