California housing markets lead the nation, and nationally prices were up 7% year-over-year, with the median price hitting $288,000 for a home.
Median days on market, now at 66 days, continued a sharp decline, down 11% year over year and 10% month over month, according to the latest report from realtor.com.
Helping create more opportunities for buyers, the listings inventory is now growing faster, at 4% over April but still down over last year.
“On the demand side we are seeing traffic and searches on realtor.com continue to set new highs,” said Jonathan Smoke, chief economist for realtor.com. “Unique users for the month are once again on pace for 40% growth year over year, while visits and searches are expected to be up more than 50% and 35%, respectively.”
California dominated the “hottest” markets list with half of the country’s 20 hottest real estate markets. San Francisco and San Jose maintain the #2 and #3 spots from April rankings, respectively. California markets rank highly because of tight supply and economic-powered growth in demand.
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Three states are represented twice: Texas with #4 Dallas-Fort Worth and #16 Austin; Colorado with #1 Denver and #13 Boulder; and Michigan with #9 Ann Arbor and #10 Detroit.
These markets are also a reflection of economic-powered gains, but the Texas and Colorado story is more of a continuing saga and shows the resilience and diversified nature of the states’ economies despite the declines in oil. Michigan’s performance is related to economic recovery and very strong affordability.
Denver resoundingly maintained the top ranking as inventory there shaved 6 days off the median age while listing views grew 7% over April.
Like Dallas, Denver is experiencing substantial economic growth, and the tight supply of housing is resulting in the fastest moving inventory in the country.