March saw record high residential real estate prices, according to data on inventory and demand from Realtor.com. The site also found that sales continued to expand this month, as homes tended to move 10 percent faster than last year, despite the rise in prices.
Realtor.com’s Hotness Index, a measure of the fastest moving markets of the month, found the nationwide median age of properties for sale on the site to be around 69 days, indicating that homes are selling eight days faster than last year.
According to the Hotness Index, the majority of the fastest moving market areas can be found in California. The number one hottest market for both March and February was Vallejo-Fairfield, California; followed by San Francisco-Oakland-Hayward, California. The median age of inventory for these two areas were 33 days and 26 days, respectively, well below the nationwide median. Areas in California make up nine of the Realtor.com’s top 20 hottest markets. Javier Vivas, Manager of Economic Research at Realtor.com, noted the large drops om days on the market, and its indication of a strong spring buying season.
“Calendars might say spring is only a week old, but we’re already in the thick of the most frenzied spring home buying season on record,” said Vivas. “The median days on market for homes on realtor.com in March saw the biggest drop since the end of the recession, and half of homes are now selling in less than 69 days nationally. Low inventory continues to be a significant problem, but record-high prices are also keeping waves of buyers at bay.”
Markets on Realtor.com’s Hottest Market list tend to receive 1.7- to 2.6-times as many views as the national average, and see inventory move 18-44 days faster than the rest of the country. The hottest markets are also seeing faster moving inventory than last month, as the median age for the hottest markets in March is 14 days faster than February.