Huge demand from buyers and few homes for sale raised prices in the Bay Area in January, as modest homes in affluent communities sold for millions of dollars across the region.
The average price of an existing single-family home rose nearly 14% year-on-year in January to $ 1 million as a result of large jumps in Santa Clara, San Mateo and Alameda regions, according to CoreLogic sales data. The regular sale price for a single-family home in San Mateo County was $ 1.7 million, more than $ 200,000 above the San Francisco and San Jose subways.
They have taken the market to the extreme, with agents selling multiple million dollars in basic Silicon Valley communities as well as desirable cities in Contra Costa County.
Core Notice chief economist Frank Nothaft said the strong Bay Area economy, relatively low interest rates and a shortage of homes for sale have squeezed the market. He said further growth was still possible, although it could be hampered by rising interest rates.
“A lot of home buyers are active in the market,” he said. U.S. home values rose 19% in the last 12 months, according to the CoreLogic home price index. Over the same period, home prices in Oakland and East Bay rose 19.5%, up 17.9% in Santa Clara County, and up 10% in San Francisco and San Mateo County.
Rising prices in the Bay Area have led to rapid supply and high returns for many sellers, allowing buyers to dig deeper into their savings and sell more shares to continue their supply wars. Agents say a list of well-maintained homes could yield dozens of bids at a median price.
High demand and relatively low interest rates have pushed home prices for a standard 30-year mortgage below 4% across the nine-nation region. The average price of a single-family home in Alameda County rose 18% in January to $ 1.1 million, up 20% in San Mateo County to $ 1.7 million, up 20% in Santa Clara County to $ 1.5 million, and rose 6.3% in Contra Costa. $ 765,000, according to CoreLogic.
It postponed all other San Francisco counties, with a median price of $ 1.5 million from the previous January, up 3.2%.
Agents are concerned that buyers have few options. Overall sales fell by 21% compared to the previous January, with 4,700 homes and homes sold in a region of more than 7 million inhabitants.
And the sale of new homes has stopped, 10% less than the previous year. In January, 341 new homes were sold in the Bay Area, a third of which were in Contra Costa County. No new homes were sold in Marin County after four were sold in December 2020.
Agents and buyers are hoping that spring will bring more homes for sale and ease demand from buyers.
“Right now, it’s a party or a famine,” said Sandy Jamison, a San Jose Tuscana Properties broker. “Vendors are not listed and listed as usual.”
“Everything is frozen. They want to sell, they want to go away, but there is nowhere to go, ”said Jamison, who spoke at a recent professional conference with actors across the country. “This is everywhere.”
Paddy Keho, an agent for East Bay Compass, said buyers have few options in desirable suburban communities. A home in Moraga was recently sold for $ 1 million at list price, almost unknown to the East Bay bedroom community.
The sale price per square foot has risen by a third more than last year, he said. It expects inventory to rise in the coming months, giving buyers more options. “Throw your hat in the ring where it makes sense,” Kehoe said, “but don’t sell your soul.”
Saratoga agent Mark Wong said the competition continues to be fierce in well-known South Bay communities of tech professionals. His real estate office accepted six offers in recent weeks for a list price of $ 1 million.
One of Wong’s clients lost three bidding wars before finding a suitable $ 2.4 million three-bedroom home in Los Altos. They didn’t want to lose for the fourth time and submitted a $ 3.5 million bid. They won in the end.
“It’s just competition,” Wong said. “List price doesn’t matter.”
That competition could be weak for buyers, he said, even if some had enough money to extend the budget by a million dollars. “But most people,” Wong said, “don’t have that money.”
Bay Area home prices headed one way — up – Times-Herald Source link Bay Area home prices headed one way — up – Times-Herald