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: 'A Trend That Won't Go Away': Sacramento City Leaders Consider Permanent Plans For Street Dining
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 Kings Tickets Back On Sale, But COVID-19 Guidelines Will Discourage Booing Or Yelling
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: Placer County Deputy Investigating Mail Theft Finds Out He Himself Was A Victim
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.