Home prices double in Stockton, California, since housing market crash




Stockton, California’s
housing market is on fire.

AP
Photo/Gosia Wozniacka, File


  • Stockton, a city in California’s Central Valley, filed
    for bankruptcy in 2012 and was named one of America’s “most miserable cities” by
    Forbes.
  • In the last five years, home prices there have nearly
    doubled.
  • Prices are surging thanks to an influx of Silicon
    Valley tech workers who can’t afford to live in the Bay
    Area.

 

If the city of Stockton, California, is any indication, misery
really does love company.

Stockton’s housing market is on fire, despite twice appearing on
Forbes’ “most
miserable cities
” ranking.

In the last five years, home prices in the Central Valley
community have increased 92%, reports Mercury News. The
median listing price in Stockton — a landlocked city of about
300,000 residents — is $275,000 right now, according to Zillow. In November 2013, it was
$180,000.

The surge is mostly thanks to an influx of homeowners priced out of
neighboring Silicon Valley
in recent years.

“There’s flight away from areas where it’s expensive, to areas
where it’s relatively cheap,” Andrew Leventis, deputy chief
economist at the Federal Housing Finance Agency, told Mercury News. “It would
be just incredibly improbable if that wasn’t driving up prices in
the west by some magnitude.”

A real estate agent in the Stockton area told Mercury News that
about half of the 18 homes he sold this year went to buyers from
the Bay Area willing to take on a longer commute for cheaper
housing.


Stockton CaliforniaGoogle
Maps

Still, there’s another major reason for the massive price jump.
Stockton was one California city hit especially hard by the
housing market collapse, so homes there have been able to make up
ground and then some.

In 2012, the city filed for bankruptcy and had the nation’s
highest foreclosure rate at more than four times the US average,
according to RealtyTrac. The foreclosure rate, along with high
unemployment rates and violent crime, helped Stockton land a spot
on Forbes’ ranking of miserable cities. 

While remarkable, the increase in home prices in Stockton isn’t a
total outlier. Nationally, home values are
rising at twice the rate of a “normal” market
 as demand
outpaces supply across the country, according to Zillow.

Oakland, a city located near San Francisco, experienced the
second-largest jump in home prices — nearly 86% — behind
Stockton, according to the Federal Housing Finance Agency.

Las Vegas, Sacramento, and Seattle metro areas round out the top
five.

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