California cities have been consistently dropping off of Realtor.com's hottest housing markets list this year. Experts cite surging median list prices as a major culprit pushing residents to move out of state.
Bay Area residents looking for more affordable housing are typically looking in Sacramento and El Dorado Counties within the state, according to Javier Vivas, Realtor.com's director of economic research. The site's research found that 52 percent of Californians looking for a home outside of their county are also looking outside the state. The top out-of-state destinations for these individuals were mostly in Arizona, including Phoenix's Maricopa County, and Yavapai County; Vegas' Clark County, Nev., and Ada County, Idaho, home to hot market Boise. These states are close to California and have home prices that are 43 percent cheaper on average.
“Our research shows many California residents may have reached their breaking point,” said Danielle Hale, chief economist for realtor.com, in a statement. “Affordability is pricing them out of the California home market, and many are searching for more affordable options in other areas." So where are they going? Some of the new hot spots include Phoenix, Las Vegas, and Prescott, AZ ... As Hale noted, this exodus could help slow price appreciation in California. But it could also potentially heat up prices and reduce inventory in surrounding markets.
