Boosted by the newest technology boom, San Jose, California, became the most competitive market across the U.S. in March, with 83.2% of homes being sold above their listing prices, according to a Redfin report Thursday.
The largest city in Northern California, which houses the headquarters for tech giants such as Adobe, Cisco and PayPal, also had the nation’s largest price growth, increasing 32.3% year-over-year to $1,263,500.
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In addition, San Jose ranked as the third fastest-moving market, with a typical home entering into contract in nine days after it hit the market, according to the Redfin report, which tracks 174 markets across the country. Denver and Seattle were the fastest-moving markets, with half of all homes finding a buyer in just seven days.
Strong demand created by technology-related wealth is in part contributing to the sizzling housing market in San Jose. Another important factor is the shortage of supply, according to Redfin data.
In March, there were only 907 homes for sale in San Jose, down 41.5% from the same period last year.
Other key findings include:
The second and third most competitive markets in the U.S. were San Francisco and Oakland, both in California. The percentage of homes selling above asking price were 76.1% and 75.2%, respectively Across the 174 markets, 23.9% of homes sold for more than what sellers asked for, compared to 22.3% last March On average, it took a home 43 days to sell in March, eight days shorter than a year ago Allentown, Pennsylvania (21.8%) and Detroit (20.6%) ranked the second and third places in terms of sales price increase year-over-year
In fact, lack of supply has been a persistent drag across major housing markets nationwide. In 73 select metros in which Redfin tracks housing inventory, 65 saw a decline in March, with 48 of those falling more than 10% annually.
"Sellers are slow to list this year and we aren’t seeing enough new construction homes to fill the gap," said Nela Richardson, chief economist at Redfin.
As a result of the imbalance between demand and supply, the median home sale price in the U.S. rose 8.9% to $297,000 in March, the largest price growth in four years, according to Redfin.
The report doesn’t break up luxury data.