The San Jose metropolitan area is the nation’s hottest housing market in 2018, according to a report from Zillow, citing the area’s steadily rising home prices and growing numbers of well-paid workers.
“Over the past five years, San Jose home values have appreciated 78 percent,” the report said, adding that its analysis “highlights just how strong the San Jose market really is. While San Francisco home values have recently started to cool, San Jose is off to the races, with home values projected to rise 9 percent in 2018.”
Among the 10 hottest markets in the nation this year, the San Francisco metropolitan area ranks fifth, according to Zillow’s projections. The Top 10 also includes two metros in the Northwest (Seattle and Portland), two in Texas (Austin and Dallas), two in North Carolina (Raleigh and Charlotte), one in Colorado (Denver) and one in Tennessee (Nashville).
The San Jose area’s median home value is $1,128,300, making it the nation’s most expensive market, according to Zillow. The median home value in the San Francisco metropolitan area — which includes San Francisco, Marin, San Mateo, Alameda and Contra Costa counties — is $893,100, second highest in the U.S. The Seattle metro area is third most costly, with a median home value of $463,800.
Zillow, the online real estate database company, based its projections on six factors: its home value and rent forecasts for the 12 months of 2018; income growth; population growth; unemployment rates; and the number of job openings per person in each metro.
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In the San Jose metro area — which includes Santa Clara and San Benito counties — year-over-year home values should rise 8.9 percent, according to Zillow’s report. It pegs the median rent at $3,514, falling 0.5 percent year-over-year. The area’s unemployment rate is 3.5 percent, while income growth is 7.9 percent and the number of job openings per person is 0.036, the highest on the list.
The tech industry continues to roar,” said Zillow senior economist Aaron Terrazas, “attracting thousands of new residents per year to tech-dominant markets like Seattle, Denver and the Bay Area.”
In the San Francisco metro, Zillow forecasts year-over-year home value appreciation of 3.8 percent. The median rent is $3,413, slipping 0.2 percent year-over-year. The unemployment rate, as in San Jose, is 3.5 percent. Income growth is even stronger — 9.2 …
Source:: East Bay – Lifestyle