Home prices across the nation are up by 6.6 percent according to CoreLogic, a real estate information company.
The Central Valley is topping the national average with even bigger increases.
Home prices in the Stockton-Lodi market rose by 7.8 percent in December compared to last year, in Modesto 9 percent, in Merced 12.6 percent.
The reasons for the price increases are two-fold, a bigger number of prospective buyers with the unemployment at an all-time low, and a smaller inventory of homes for sale.
John Beckman, CEO of the Building Industry Association of the Greater Valley, says the market is right but new construction is still on hold.
“It’s a long-term process to produce new housing units. It takes a little bit longer amount of time than it used to. A lack of skilled labor and a little bit more regulation.”
Beckman says with that in mind prospective home buyers will see home prices continuing to climb along with higher rents.
The Sacramento-Roseville area saw prices increase as well -- 8.5 percent over last year.
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