East Bay, Silicon Valley, house prices skyrocket with demand from suburbs
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Bay Area homebuyers have started to move to neighborhoods closer to their offices, pushing prices up in Alameda and Santa Clara counties.
The median selling price of a single-family home in the Bay Area hit $ 1.13 million in September, down slightly from this summer’s records. Homebuyers’ thirst for suburban space continued, but cooled in the outer suburbs of Contra Costa and Marin counties, according to data from CoreLogic.
Economists and agents alike expect a robust market as the holiday season approaches, with interest rates low and millennial techs looking to buy.
The relatively limited supply of homes for sale means buyers are moving quickly. “What’s up, we’re bidding on that,” Fremont agent Sunil Sethi said, “and we’re never alone.”
The median price of an existing single-family home in the Bay Area jumped 16% from last September, according to CoreLogic. The year-over-year gain reflects a market slowed by the pandemic in 2020, which has rebounded to record levels since the start of this year.
Home prices have increased in all nine counties of the Bay Area. But the biggest gains were in Alameda, where prices jumped 17.2 percent from the previous year to $ 1.13 million and in Santa Clara, up 14 percent to $ 1.51 million. of dollars.
Contra Costa County prices rose 9.3% to $ 820,000, San Mateo 8.3% to a regional high of $ 1.79 million, and San Francisco 3.1% to hit 1 , $ 67 million.
Overall sales, including new units and condos, are up 6% from the previous September, suggesting that buyers and sellers have allayed their concerns about viewing and showing homes during the pandemic. .
The Bay Area market has seen fewer ups and downs during the pandemic than other parts of the country, CoreLogic economist Selma Hepp said.
âWe were really expecting, at this point, to have lower sales,â Hepp said. âThe demand is still there. Sales fell sharply in Marin and Napa counties, while closures rose by double-digit percentages in Santa Clara and San Francisco counties, suggesting buyers are returning to urban and suburban homes in proximity to employment centers.
In the East Bay, shoppers saw more choices in the market in El Cerrito and Pinole. But agents have planted fewer signs for sale in Clayton, Martinez and Walnut Creek. Home inventory also fell in Fremont and Newark from the previous year, according to the Bay East Association of Realtors. The median price in Berkeley in September hit $ 1.6 million and nearly hit $ 1.5 million in Fremont, according to local data.
California Association of Realtors’ chief economist Jordan Levine told brokers in East Bay that economic conditions are expected to improve with more people returning to full-time work and continued low interest rates through 2022. After months of record lows, interest rates have climbed more than 3% on a standard 30-year fixed mortgage.
âFor sellers, the market is still pretty hot,â Levin said.
Santa Clara agent Alan Wang sees buyer fatigue and a slight slowdown in the hectic pace of spring and summer. But Wang still sees move-ready homes in Silicon Valley receiving multiple offers and selling out quickly.
After losing three or four auction wars, some home buyers have decided to wait until next year. âIf you underestimate the market,â Wang said, âyou’re going to get a reality check very quickly. “
Yet tech professionals continue to take over homes in the valley, he said. One of Wang’s clients fell in love with a completely renovated four bedroom house in Belmont with stunning views of the hills. At least six buyers made offers, pushing the list price from $ 3 million to nearly $ 3.5 million. Her clients won, but only after pushing their budget to the limit.
âWe knew the house was beautiful,â he said, âand we knew it would be a battle. “
East Bay homes are selling faster, with buyers willing to accept preemptive offers or just accept a smaller number of strong offers, Sethi said. Data from East Bay shows that high-end homes priced over $ 3 million are selling for seven times the volume they sold in 2020.
Lamorinda’s agent Paddy Kehoe said the market has started to stabilize a bit. But buyers are always willing to pay extra for good locations, he said.
âBuyers aren’t afraid to bid 15%, 20%, 25%,â Kehoe said. âThere is almost a feeling of hopelessness. “
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