Bay Area Home Prices Break Over $ 1 Million in April – Silicon Valley

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. Bay Area Home Prices Break Over $ 1 Million in April – Silicon Valley

Back to top button