U.S. housing markets are on track to be the best since 2006, with California leading the way, the nation’s Realtors reported Tuesday.
Realtor.com said California dominated the “hottest” markets with almost half of the country’s 20 hottest real estate markets. The Golden State’s markets rank highly because of continued tight supply and economic-powered growth in demand.
Here’s how California markets ranked nationally in June according to number of views per listing on Realtor.com and the median age of inventory:
- San Francisco-Oakland — 1
- Vallejo-Fairfield — 2
- Santa Rosa — 4
- San Jose — 6
- Santa Cruz — 10
- Sacramento — 11
- San Diego — 12
- Stockton- — 16
Texas was second to California, with Dallas-Fort Worth, Midland, Austin and San Antonio making the list of hottest markets.
“Factors lending themselves to the market’s upswing are the psychological effect of recently increased mortgage rates as well as the specter of the Fed raising interest rates later this year,” said Jonathan Smoke, Realtor.com’s chief economist. “Although demand has been strong all year, in June we’re finally beginning to see an uptick in supply as sellers become more confident about home prices.”
Realtor.com noted an increase in the number of first time home buyers — many of whom are millennials sidelined by challenging market conditions.
The real estate website is the official site of the National Association of Realtors.
