Yes, you read that right! Pleasant Hill is the 2nd hottest market in the U.S. according to Realtor.com:
“Millennials are a key factor turning up the heat in America’s hottest housing markets. Fueled by large populations of millennials attracted to affordable prices and strong job markets, top ZIP codes, led by Watauga, Texas (76148) and Pleasant Hill, Calif. (94523), are rising above 32,000 others to make up realtor.com®’s hottest ZIP codes of 2016.
The top ten ZIP codes include: 76148 (Watauga, Texas) a suburb of Fort Worth; 94523 (Pleasant Hill, Calif.); 80233 (Northglenn, Colo.) part of the Denver metro; 80916 (Colorado Springs, Colo.); 78247 (San Antonio); 94954 (Petaluma, Calif.); 02176 (Melrose, Mass.); 63126 (Crestwood, Mo.); 97222 (Milwaukie, Ore.) a suburb of Portland; and 92104 (North Park, Calif.) a town in San Diego.
We ranked the list based on the time it takes properties to sell and how frequently homes are viewed in each ZIP code. Homes in this year’s top 20 hottest markets sell in an average of 25 days – just over three weeks – 53 days faster than the rest of the country. Realtor.com® users view homes in these markets almost four times more often than homes in the rest of the country.”
We knew Pleasant Hill was hot because we’ve sold there and have several current buyers looking at the area, but we would never have thought it was the 2nd hottest market out of over 32,000 that they considered. So we decided to do a little fact checking to see if the stats back up what they are claiming…
Our definition of a hot market is how fast and high the prices have climbed in combination with how fast the homes are selling. We’re not going to address the number of property views on their websites because we can’t quantify that easily. But looking at statistics from the industry leading MLS data provider, Trendgraphix, we can see what prices and days on market have been doing. Here is what we found:
The average for sale price is up 20.7% from last year.
The average sold price is up 10.3% from last year.
The average days on market are down 29.6% compared to last year.
Those numbers are way beyond the national averages and absolutely substantiate the activity that Realtor.com is seeing on their website. Millennials, the largest generation in history, are a key factor in the real estate market right now. And there are larger shares of millennials in the hottest markets, and especially those making over $100,000/yr. In fact, in Pleasant Hill, there are over twice as many millennials making over $100,000/yr as the national share.
The $630,000 median price, while high nationally, is a veritable bargain compared to the other towns of the 680 corridor – Walnut Creek, Alamo, Danville, San Ramon etc. They’ve done a lot of work in Pleasant Hill and the downtown and surrounding area not has the restaurants, shopping and entertainment that millennials are looking for.
#2 Pleasant Hill, CA from Realtor.com:
“This slice of suburbia is located in San Francisco’s East Bay, less than 30 miles from San Francisco and nearly 20 miles away from Berkeley and Oakland. It borders Walnut Creek, an affluent community with expensive homes and boasts a beautiful downtown area with parks and highly ranked public schools such as Strandwood Elementary School and Sequoia Elementary School, making Pleasant Hill highly desirable for home buyers. It’s central location to highways 680 and 24 and a BART station make it a central location for commuters.
Millennial activity: The dominant buying group in this ZIP is 35 to 44 year olds which make up 31 percent of buyers, but millennials are a close second making up 26 percent of mortgages. The biggest strength for millennials in Pleasant Hill is their income. Forty-two percent of millennials in this area make over $100,000, which is two times the norm for millennials in the U.S.
Housing market and jobs: Homes in Pleasant Hill sell in 19 days, 30 percent faster than last year and 12, 10, and 59 days faster than the county, metro and U.S., respectively. Homes in this ZIP code receive 2.0, 2.4, and 5.4 times more views than the county, metro and U.S., respectively. The median list price for the area is $630,000, up almost four percent for the year and seven percent higher than county, 23 percent lower than metro, and 160 percent higher than U.S. The area is experiencing 2 percent job growth this year, which will translate into 7,200 jobs created. The area’s unemployment rate is 4.4 percent and trending lower.”
If you are interested into looking into Pleasant Hill, give Carol a call at (925) 487-2353. She’ll be happy to take you on a personalized tour!
Photo courtesy of @Photoz2frame!