Rent increases in Oakland
Real estate in Oakland is no joking matter. As 2012 comes to a close, more people are beginning to look at the Bay Area than ever before, and because San Francisco properties are so expensive, many potential homeowners turn toward the East Bay for discount houses and quality listings.
However, this increased interest is having an adverse effect on rental rates in the metro area - if you are considering a relocation to the greater Bay Area, it might be prudent to search the market as soon as possible.
One unfortunate side effect of the increasing spotlight on Oakland is the exponential rise in rent. Companies like Kennedy Wilson (KW) are purchasing massive amounts of property in the area to refurbish for apartments. Daily Finance reported that KW recently snatched up a 178-unit building in Oakland.
"Oakland has enjoyed tremendous growth over the past two years," said Bob Hart, president of KW Multifamily Management Group, explaining the purchase to Daily Finance. "The area has experienced a gentrification and spillover effect from the rapidly increasing rents in San Francisco. Rent growth in Oakland was 10 percent in 2011 and 7.8 percent as of the first quarter of this year, which is the fourth largest increase in the country."
As rent continues to increase in Oakland and companies like KW create luxury apartment listings, residents and potential homeowners will look toward the long-term investment of a house instead of paying expensive monthly rent. Check out the real estate market in Oakland today before it is too late.
Asking prices also increase
Rent is not the only obstacle standing in homeowners' paths - the average asking prices for homes for sale in Oakland rose by 8.8 percent year-over-year. This is both advantageous and challenging for people who are currently scrutinizing the local market.
The rise in asking prices is beneficial because if you can secure a property now, you can expect it to appreciate in value over the next few years. The housing bubble and bust of the mid-2000s appears to be over, and although there is no guarantee, Oakland and San Francisco are two of the hottest metro areas in the United States right now when it comes to demand.
However, the other side of the coin is that discount listings might be hard to come by in 2013 and beyond as asking prices are forecast to continue to rise. Therefore, an immediate appraisal of the current listings is a great idea for those seeking relocation.