SACRAMENTO (CBS13) – The pandemic has created a real estate climate in the U.S. like no other, and the housing market is still feeling its effects.
When the COVID pandemic began, public health concerns and stay-at-home orders slowed the market down as buyers and sellers held back. Over the course of the year, demand rebounded and increased household savings led to more people — especially first-time buyers in the millennial generation — entering the market.READ MORE: Family’s Car Riddled With Bullets As They Drive Away From Tracy’s West Valley Mall
In addition, those with families were seeing more space and amenities for school and remote work, which also drove up demand.
Despite strong interest from buyers, the supply of homes hasn’t been able to keep up. In a typical year, the number of active listings and the median list price for homes stays roughly in sync, following the seasonality of the real estate market. In 2020, however, there was a divergence as prices continued to increase while active listings fell sharply.READ MORE: Sacramento Renews Interest In Zoo Relocation Sites
Two mid-sized metropolitan areas in the Sacramento region topped the list of having the fewest homes for sale. They are Vallejo, at number 3, with 47 listings per 10,000 and homes, and Modesto, at number 5, with only 53 listings per 10,000 homes, according to a report from Inspection Support Network.
While economic growth in these two cities may not be as strong as other cities with high demand, some sellers aren’t selling, for fear of having nowhere else to go.MORE NEWS: Thieves Hit UC Davis, Rite Aid, CVS, Safeway Over Weekend
Two of the top ten large-market areas in the U.S. that made the list were San Jose-Sunnyvale-Santa Clara at number two, and San Francisco-Oakland-Berkeley at number 6.