San Diego was the eighth “hottest” real estate market in the country in May, with properties for sale a median of only 37 day, according to a report Thursday by Realtor.com.
The website operated by the National Association of Realtors said San Diego moved up from 13th place and a median of 41 days on the market in April.
Nationally properties were on the market for a median of 65 days, the same as in May 2015 and down 4 percent from April.
Seven of the 10 hottest markets were in California in May, led by Vallejo-Fairfield north of the San Francisco Bay Area.
“Based on our early read of demand and supply data in May, this spring’s real estate market is coming in strong, just as we expected,” said Jonathan Smoke, chief economist of Realtor.com. “Pent-up demand and low mortgage rates are driving consumers into the market with urgency. However, the recurring issue of limited supply is leading to record-high prices.”
Smoke said gains in single-family construction are beginning to relieve pressure in the market, noting that buyers can avoid a bidding situation if they sign a contract on a home to be built.
“As the share of new homes sold goes up, we should eventually see signs of more balance in the existing home market, like lower price appreciation,” he said. “However, we clearly aren’t there yet.”
