Realtor.com came out with their 20 Hottest real estate markets in the nation. 11 of these are in California and we’ve added two NEW spots–Eureka and Fresno. Eureka is way up north on the coast of California. Isolated, older fishing community but it is very affordable as is Fresno which is in the “Valley”. “Valley” properties in the greatest state of California are fairly depressed and still have higher percentages of distressed homes. They have yet to get even close to their pre-bust highs. If you look at the top lists you’ll see 4 of these hottest market are in the California interior valleys—Sacramento, Stockton (at one time ground zero for the distressed market in California), Modesto and Fresno. What they all have in common is affordability. Median priced homes in these areas range from $270,000 to $317,000. Compare these prices with Santa Rosa (#13 on the list with a median price of $597,500).
California home pricing is all about the “coast”. If you look at our communities you’ll see the big prices are along the coastal area with San Francisco being THE most expensive and hottest market. Why? The hub of international trade, finance and technology. Some of the biggest Tech companies call San Francisco, and NOT Silicon Valley, home. What makes these very expensive markets to appear on the “hottest” list is the amount of demand and how quickly they sell.
“We are seeing evidence of stronger-than-normal demand this off-season, as buyers remain eager to make purchases,” says Jonathan Smoke, chief economist of realtor.com. “As a result, the number of homes for sale declined more in October than at any other point this summer, and left us with 11% fewer active listings than last October. That’s the biggest monthly inventory decline since July 2015.”
“Smoke’s team analyzed the data to come up with a list of the 20 hottest markets in the country, where homes are in high demand (as seen from listing views by market) and selling fast (measured by days on market).” When looking at #13 on the list, Sonoma County (my marketplace) , we are located in a county with a coastline (I’d say one of the most beautiful coastlines ever!) and are located just one hour north of the Golden Gate. Sonoma County is a “destination” site for tourists from all over the world. We have some of the wine appellations and our Pinot Noir and Cabernet are on a par of the great old growths of France. How did we make this list? We make this list as our “DOM” or Days on the Market dropped -17% over last year to 59 days. Our MSI or “Month’s Supply of Inventory” dropped -23% to a 2 months’ supply. Very skinny. Currently in Sonoma County we have only 742 “Showable” listings for a population of 480,000 and ALL price points.
Remember, a 4 to 6 Months’ Supply of Inventory is considered normal. We have a 2 Months’ Supply or a very hot seller’s market.