Home prices rise in San Francisco while foreclosures decline
When it comes to a national housing market, every country has a jewel city that features quality homes, affordable asking prices and low rates of foreclosure. In the United States, this star region is the Bay Area - the houses for sale in San Francisco are among the most coveted in the nation.
While everyone loves the laid-back atmosphere of North California, two statistics are having a particular effect on the spotlight on the Bay Area - residence values and foreclosure numbers.
Average asking price
Recent numbers showed the San Francisco was ranked as the number 10 metro that experienced the highest year-over-year price increase from November 2011. The average home price rose by 8.7 percent - the only Californian metro areas to beat this percentage were San Jose and Oakland, both of which are situated in the nearby Bay Area.
"For homeowners, rising prices add to their wealth and help bring underwater borrowers closer to positive equity," said real estate expert Jed Kolko. "In markets like Denver, San Francisco, and Oakland, where prices and rents are both rising, higher prices mean higher down payments, but rising rents make it harder to save enough."
Following this logic, it might be prudent to check out the real estate market as soon as possible before listed prices shoot up.
Compared to October of 2011, foreclosures in the greater San Francisco area have reduced by 36 percent, according to the Home Buying Institute. Decreased foreclosure numbers are normally associated with a burgeoning market, and over the course of 2012, San Francisco has proved again and again that it deserves the top spot in the nation's most-desirable metro areas.
The length of time houses stay on the market is just one such factor. The news source reported that the median number of days a listed property spent on the market within San Francisco County was 40 days, a shocking 18 percent decline from last year.
"The sustained good news in home prices over the past five months makes us optimistic for continued recovery in the housing market," said housing analyst David M. Blitzer, according to the news source.
Increasing asking prices, coupled with lowering days-on-market (DOM) and foreclosure figures, are sparking a surge in demand for Bay Area housing. Are you taking advantage of the trend by searching for a new home?