Job growth is helping to lift the housing market in key areas.
The three cities that are posting some of the strongest price growth year-over-year are also seeing faster job growth than the national average, according to government data.
Phoenix, San Francisco, and Las Vegas have seen home prices rise nearly 20 percent or more year-over-year. All three cities also beat the national job growth average of 1.5 percent year over year.
For example, Phoenix posted a 2.4 percent gain in jobs year over year; San Francisco a 3.6 percent rise; and Las Vegas was up 2 percent.
In Phoenix, investors are making up nearly 28 percent of March sales, Mike Orr, a real estate expert at Arizona State University, told USA Today. Phoenix is also seeing a very tight inventory, with a 2.9 month supply of homes for sale; a 6-month supply is considered balanced.
In San Francisco, the single-family home supply was also tight, averaging 3.1 months in February, according to the California Association of REALTORS®.
Source: “Rising home prices, job growth go hand-in-hand,” USA Today