The Bay Area housing market has been in hot demand for many years thanks to the tech boom, and experts are now saying the bubble won’t burst, but settle to a new normal. So how do you navigate the landscape of Bay Area real estate? Here we look at 5 insights to help you, and tips on how you can get the upper hand on the Bay Area housing market.
Bay Area Buyers Need A Higher Income Than Ever
Affordability is still a significant issue in the Bay Area housing market. A recent report shows that the income needed to buy a median priced home in the Bay Area has now doubled since 2012. In 2012, a minimum income of $90,370 was required to purchase a median priced single-family home in the nine county Bay Area. In the wake of substantial job growth and rising housing prices, the minimum necessary income has now jumped to $179,390. However, home prices are highly location specific and there are areas where homes are more affordable, so it’s essential to talk with your real estate agent about finding the right priced home for your income and needs.
Buyers Increasing and Prices Rising, But At A Slower Rate
While Bay Area housing prices are continuing to climb, this is now happening at a slower rate than it was previously. Buyers are still competing for a very tight supply of homes, which keeps demand high and prices rising. However, there’s been a moderation of price growth and a slight decline in sales over the last year. With the market coming to a bit more of a simmer, but demand still high, it pays for buyers to be patient and take their time, working with an experienced real estate agent to get the property they want.
High End Softening, But Entry Level Active
With the market slowing down just a bit, it’s the high-end market that’s softening, while entry level homes are still in high demand. Homes on the relatively lower end of the price spectrum are receiving multiple offers and often sell well above asking price. This reflects more home buyers who are trying to get a foot in the door of the Bay Area housing market, so competition may be particularly high for first time home buyers.
Bay Area Real Estate Value is Location Centric
As always real estate value is highly location centric, with prices and demand varying between areas and from month to month. With a lot of demand and activity on the market, it’s essential to work with an expert real estate agent who is familiar with the area that you want to buy in. A qualified real estate agent can help you understand whether a home will retain its value over time, and the different aspects of the location that can help you determine whether the home is a good investment or not.
An Experienced Real Estate Agent Can Help You Play To Win
In a real estate market like the Bay Area with demand still high and the market moving fast, you need an experienced realtor on your side to help you stay competitive. This is true whether you’re planning to buy or sell. More and more homes are receiving only few or no offers by the offer date which means buyers need to be more competitive and sellers need to be on top of addressing the slightest of market corrections to ensure the property sells.
Working with a Bay Area real estate agent who knows the market and knows your area is essential to give you an edge and stay competitive in the Bay Area housing market. For more insights and advice on how to buy or sell your bay area home call us today for expert assistance.