Solano County Housing Markets Ranked Third ‘Hottest’ in 2021

According to a recent ranking, the Solano County real estate markets of Vallejo and Fairfield were the third “hottest” in the country for March 2021.

This is based on an April 14th report published by the research team at Realtor.com. Of the nation’s largest metro areas, the Vallejo-Fairfield metropolitan area housing market is currently one of the hottest. The “hotness” factor was measured by the number of property views, the pace of real estate transactions, and other factors.

Solano County Housing Market Among ‘Hottest’ in 2021

In April 2021, housing analysts from Realtor.com published an update to their hottest housing markets ranking. The company updates this report every month, based on data collected for metro areas across the country.

In their “March 2021 Hottest Housing Markets” report, the California metro area of Vallejo-Fairfield rate had the third-hottest real estate market in the country. Only two metro areas ranked above it on this list, both of them located in New Hampshire.

Realtor.com determines these rankings based on a variety of supply and demand factors. Mainly, they look at the number of property views for each metro area, along with the length of time homes stay on the market.

These and other indicators give some sense of how “hot” or active the local real estate scene is. And clearly, the Solano County housing market is one of the hottest in the country.

To quote their April 2021 report:

As a group, Realtor.com’s 20 Hottest Housing Markets received 1.4 to 4.1 times the number of viewers per home for sale compared to the national rate. These markets are seeing homes for sale move 23 to 44 days more quickly than the typical property in the United States overall.

This report also showed that homes listed for sale within the Vallejo-Fairfield area spent a median of just 11 days on the market, during April 2021. This means are selling very quickly within this particular real estate market.

And the pace has accelerated over the past year or so. According to Realtor.com, the median number of “days on market” for this area dropped by -60% from March 2020 to March 2021. In other words, an already fast-moving real estate market has gotten even faster.

Home Prices Rising Steadily in Vallejo & Fairfield

The real estate markets of Vallejo and Fairfield are currently experiencing a high level of competition among buyers. There are plenty of buyers in the market seeking homes to purchase, but not enough properties to go around.

This supply-and-demand imbalance put Vallejo and Fairfield onto the hottest housing market list mentioned above. It has also boosted home prices considerably over the past year.

According to the real estate data company Zillow, the Vallejo-Fairfield metro area posted double-digit home price gains over the past year. The median house value in the area rose by 10.9% from April 2020 to April 2021. Looking forward, the company predicts that prices could rise by around 12% over the next year or so.

When this article was published, in late April 2021, the median home value within the Vallejo and Fairfield housing markets was around $510,000. That’s relatively low compared to other cities across the Bay Area. In fact, Solano County is home to some of the most affordable housing markets within the broader Bay Area region.

But with prices climbing, home buyers should still have a sense of urgency.

Even More Evidence of a Hot Real Estate Scene

Also in April, the California Association of Realtors (C.A.R.) published a report that showed steep home-price gains within Solano County. According to their research, the median sale price for existing single-family homes within Solano County climbed by 20% over the past year or so. That’s from March 2020 to March 2021.

The C.A.R. report also revealed very low inventory levels within the Vallejo and Fairfield housing markets. As of March 2021, Solano County had an “unsold inventory Index” of 1.1. That’s down from 2.4 a year earlier. It was also one of the lowest inventory readings among California’s 58 counties, for that particular month.

Similar reports have shown the Vallejo and Fairfield housing markets have a high percentage of homes that are off the market within two weeks. This area also has a high percentage of homes that are sold above the original list price. Both of these metrics reflect a hot housing market where buyers are competing fiercely for limited inventory.

Given all of these trends, it’s no surprise to find the Solano County real estate markets of Vallejo and Fairfield on Realtor.com’s hot list (again). Tight supply conditions, combined with strong demand among buyers, have boosted prices and competition all across Solano County. The Vallejo and Fairfield housing markets reflect a broader trend that is happening throughout the Bay Area.

What It All Means for Home Buyers

So what does all of this mean for people who are planning to buy a home in either Vallejo or Fairfield in 2021?

For one thing, you need to be prepared to hit the ground running. This is a fast-moving market where offers tend to stack up. Many of the homes listed for sale within Solano County go under contract within days of the original listing. This often follows a bidding war scenario where buyers attempts to outbid one another.

As a home buyer, it’s also important for you to have your financing arranged — before entering the real estate market. If you’re planning to use a mortgage loan, this means having a pre-approval letter from a lender along with a clearly defined budget. This will help you make a strong offer when the right property comes along.