Although still among the fastest-moving housing markets in the country, California cities may finally be showing signs of cooling off
Could some of the most in-demand housing markets be cooling off? A recent study from Trulia reveals that the hottest moving housing markets are slowing down, and sellers in cities lagging from the recession are benefiting from quicker absorption rates.
The Bay Area might be known as one of the hottest housing markets in the country, but homes are sitting on the market longer than they have been in the past few years. While San Jose, Oakland, and San Francisco feature impressive demand – less than 42 percent of homes for sale in these metros remain after one month – a deeper look reveals the percentage of lingering listings increasing (Image: Jorge2015 via Pixabay).
In San Jose, the percentage of homes still for sale after one month last April was 35.5 percent. This April, the percentage grew to 37.7 percent, a 2.2 percentage point growth in share of homes still for sale. The median value for San Jose homes for sale is $949,000, as of April.
Oakland had just 35.5 percent of homes still for sale after one month last April. But this year, the share grew 4.0 percentage points to almost 40 percent. The median home value is Oakland is $639,000, which reflects wider affordability in the East Bay.
While San Francisco’s median home value is an astonishing $1.05 million, the percentage-point difference in share of homes for sale after one month grew the highest of the fastest-moving housing markets at 5.8 points. Last April, just 35.5 percent of homes were on the market after one month, while this April, 41.3 percent of homes were still on the market after the same period of time.
San Francisco hit second and Oakland eighth on the overall list of metros with the biggest slowdown. At the same time, homes in these areas are still moving more swiftly off the market than any other metro in the U.S.
For the full report of which U.S. housing markets are slowing down and which are speeding up, and to view accompanying charts and graphs, follow the link below.