Current Bay Area Home Price Trends
With its temperate weather conditions and picturesque landscapes, the Bay Area has always been an attractive location for people looking to purchase homes. Unfortunately, Bay Area home prices (along with the rest of the nation's home prices) dropped during the housing market crash. Although the housing market is still feeling the effects of the recession, it's good news that the Bay Area home prices are on the rise.
An Increase in Bay Area Home Prices
According to the real estate information company DataQuick, the median selling price for homes in the Bay Area recently reached $429,000, which is the highest it’s been in the past four years. At a certain point during the past few years, the average median selling price dropped to its low point at $290,000. The fact that Bay Area real estate has made such a significant recovery is a mark of increased buyer confidence and better financial health for Bay Area residents.
Individual cities within the Bay Area are also faring well. The Case-Shiller Home Price Index reports that single-family home values in San Jose are the highest they’ve been since September of 2010. San Francisco single-family home prices are also experiencing positive trends, with prices at their highest since the summer of 2010.
A Sellers’ Market
Although the recession caused a large portion of the country’s cities and towns to become buyers’ markets, that trend is starting to turn around. Many real estate professionals are reporting that cities within and close to the Bay Area are currently sellers’ markets. In other words, the number of people looking to buy a home in the Bay Area exceeds the number of people selling their homes.
Due to increase in demand, homes that are put up for sale in this sellers’ market will often be snatched up by a buyer in a relatively short period of time, and it may even sell for more than its listing price.
If you’ve been thinking of selling your Bay Area home, but you’ve been hesitant because of the lingering effects of the recession, now is a good time to put your reservations aside. The housing market has largely improved, so you have a much better chance of getting solid bids and selling your house quickly.
What It Means for Buyers
If you’re a buyer, there are still good reasons to confidently shop for Bay Area real estate. If the upward trend continues for Bay Area home prices, purchasing a home now will help you avoid even higher prices later.
Before you shop around for a new home, there are a couple of strategies you’ll want to keep in mind to find the most success in a sellers’ market. Once you find a house you love, you may need to act quickly to avoid losing out to another buyer. You may also have a better chance at closing the deal on the house if you bid higher than the listing price. Note that it's a good idea to talk to a real estate agent who is experienced when deciding on an price for your home.
Whether you’re a current or future Bay Area homeowner, the rising value of Bay Area real estate is good news all around. If you’ve been considering buying or selling a home, you can feel confident about taking advantage of the area’s encouraging market trends.