The Bay Area’s spring home buying season exploded in April, with active sales and prices surpassing $ 1 million for the second straight month.
The median price of existing single-family homes in the 9-county area reached $ 1.15 million in April. This is underpinned by supply shortages and strong demand for suburban space. Data from CoreLogic and DQNews show that prices have risen 12% since March, a favorable trend for home sellers, but a more expensive bid war for buyers.
Still, economists and agents say the bubbling market isn’t a bubble, but reflects the Bay Area’s economic strength, homebuyer demand, and too few homes available.
Selma Hep, Deputy Chief Economist at CoreLogic, said persistent demand for pandemics is pushing prices up. “This is a traditional buyer, not a speculator,” Hep said. “I think there’s a lot of speculation when it comes to’bubbles’, but it’s not speculation.”
A mortgage analysis by a Bay Area real estate researcher, especially in the San Francisco, Santa Clara, and San Mateo counties, supports Hep’s claim. Last April, we found that the Bay Area had the lowest loan delinquency rate in the United States.
Studies show that unlike the increase in mortgage defaults that led to the 2007 mortgage crisis, real estate owners with government-sponsored loans are paying mortgages in the Bay Area.
While prices are skyrocketing in the once relatively affordable Eastbay community, Silicon Valley technicians bid more than $ 100,000 more than the list price to buy the city of Peninsula. With low interest rates around 3% of standard mortgages, buyers can expand their budget.
According to Corelogic, the Bay Area’s home price surges were up nearly 25% year-on-year in Contra Costa County to $ 972,000, Alameda County up 17% to $ 1.18 million, and Santa Clara County up 11.5%. It was $ 1.52 million. Data. Median prices rose 8.5% to $ 1.75 million in San Mateo County and rose 2.9% to $ 1.79 million in San Francisco.
The median price rose 28% from April 2020, the lowest level of real estate, and most sales ended with the first lockdown of the COVID-19 limit.
Sales of all homes, including condominiums and new and existing homes, increased by 15% from March to April. The number of transactions has more than doubled since the previous April.
According to Hep, part of the demand is driven by buyers’ anxiety. “If you don’t enter now, you can’t enter.”
Agents and real estate experts say the market has accelerated to the last peak level seen in 2018.
In Alameda and Contra Costa counties, the average number of days on the market decreased from 25 to 13 days from January to May. “Price increases in East Bay are breathtaking,” said David Stark of the Bay East Realtors Association.
Michelle Ronco of MLSListings said home inventories are starting to grow, but not enough to keep up with demand. For example, in Cupertino and Saratoga, homes are listed and sold on the same day. “What’s to come is coming soon,” Ronco said. “It’s just basic supply and demand.”
She said the general trend in Silicon Valley for homes to be sold at a higher price than the listing price is not only in Hollister, but also in Santa Cruz and Monterey counties. All of these regions have recorded record high home prices in recent months, according to data from MLSListings.
According to Cupertino agent Ramesh Lao, a professional couple continues to bid on single-family homes near Peninsula’s tech offices. He warns customers that they may need to prepare more money to close the deal.
One of Rao’s clients, a tech couple in their thirties, began looking for a single-family home in San Jose with a lovely garden for an initial budget of $ 1.3 million. They were told to expect to extend their finances and eventually won the bidding war with a $ 1.75 million offer of a spacious four-bedroom with a collection of fruit trees in the backyard.
Lao said space demand remains strong, despite the relaxation of pandemic restrictions. “Who is the buyer who said’I want a small house’?” “They always want a bigger house,” he said.
According to Pleasanton agent Tina Hand, the market is a challenge for many buyers. She needed to help her clients adapt to East Bay’s fast pace and inflation. “The list price is just a number. The assessed price is really just a number,” Hand advises new buyers. “What is the amount you are really willing to pay?”
https://www.siliconvalley.com/2021/06/05/bay-area-home-prices-top-1-million-in-april/ Bay Area Home Prices Break Over $ 1 Million in April – Silicon Valley