People who relocate into the San Francisco Bay Area often spend a lot of time…
Housing Forecast: Is Vallejo the Hottest Bay Area Market?
Recent housing market reports and forecasts suggest that Vallejo, California is currently one of the hottest real estate markets in the country. Experts predict that home prices in the area will continue rising through the end of 2017 and into 2018, and at a faster pace than most Bay Area cities.
Here are the latest housing market trends and predictions for Vallejo, California, as we head into summer of 2017.
Report: Vallejo the Hottest Housing Market in the Country
On June 1st, Realtor.com updated its list of the hottest housing markets in the United States. They evaluate current real estate trends in most of the major cities across the country, with an eye out for markets that have strong home-buying activity.
Vallejo, California was ranked as the #1 hottest housing market in the country for May 2017. It held the top position during the previous month as well.
The housing analysts and economists at Realtor.com single out markets where homes are selling quickly. They also pay attention to the number of home searches within each market, which is an indicator of demand. Based on these and other factors, they once again named Vallejo as the hottest real estate market in the United States.
To quote the June report:
“When we pulled together this month’s list of the hottest markets in the country, the top markets were a one-two punch for the Bay Area, with San Francisco (including nearby Oakland and Hayward) at No. 2 and Vallejo, just to the north, at No. 1.”
Related: Buyers leave Bay Area for Sacramento
Forecast: Home Prices Rising Into 2018
A recent forecast from the economists at Zillow suggests that home prices in Vallejo, California could outpace most Bay Area cities over the coming months.
In June, the company predicted that home values in the city would rise by 4.2% over the next year.
By comparison, they forecast a more modest 1% gain for San Francisco, 2.5% for Oakland, and 1.7% for San Jose. The one-year price projection for most other Bay Area cities falls somewhere between 1% and 3%. So the Vallejo housing market forecast stands out above the rest.
Related: Income needed to buy in Bay Area
This is no surprise, given the current level of demand for housing in the area. Home-buying activity remains high in the area, but inventory is lacking. This is creating a high level of competition among buyers, while also driving prices north.
Home buyers entering the Vallejo real estate market in 2017 or early 2018 should be prepared for stiff competition. Among other things, this means having your finances lined up before you enter the housing market.
Buyers who are planning to make a cash offer should have the money in the bank to bank statements to prove it.
Those who are planning to use a mortgage loan (which is the vast majority of Vallejo home buyers) can benefit from getting pre-approved ahead of time. Mortgage pre-approval shows sellers that you’re serious about buying their home, and that you’ve been screened by a lender already. This is especially important in a real estate market like Vallejo, which is predicted to be a hot market for the foreseeable future.
Have mortgage questions? Bridgepoint Funding has been serving home buyers across the Bay Area for more than 16 years. We offer competitive rates on a variety of loan products, including FHA, VA and conventional. Please contact us if you would like to get pre-approved for a loan, or if you have mortgage-related questions.
