The Bay Area housing market has been a source of interest for a long time. Consternation, wonder, and excitement are common for homebuyers, sellers, agents and pundits over the past 16 years. Throughout that time, various trends have lead experts to wonder “Is the Bay Area housing market at its peak now? Is it cooling? Or is it just warming up?” There’s no one way to assess or predict this. But we can look at trends over various areas in the market to see what’s happening in the Bay Area housing market as of late 2017.
Market Generally ‘Cooling’
Most experts are saying that the current Bay Area housing market overall is ‘cooling’ on its red-hot growth over the last 4-5 years. Supply is shrinking and prices are still steadily increasing, but at a much lower rate than before. Growth in home sales has stalled in the last few months, mainly due to dwindling inventory. However, this also has the effect of stabilizing price growth. It’s important to consider that while these trends are observed on the ‘big picture’ scale, the reality differs by individual neighborhoods and situations, meaning homebuyers can still find the home they are looking for, with the right tools and preparation.
Higher End of The Market Plateauing
One assessment that is emerging in 2017 is that the higher end of the housing market is plateauing, with less demand and sales for more expensive, luxury homes. In general, within the highest tier of home prices ‘bubbles’ and ‘crashes’ in sales are much smaller and less impactful than in lower price tiers.
Affordable Homes In High Demand
More affordable homes in the lower price tiers are still in hot demand, and fierce competition for these properties is also contributing to growth in sales prices within this lower tier. Starter home inventory is now at the lowest count since 2012, however, new developments in the Bay Area will be adding a fresh supply of starter homes to the market by the end of 2017.
Will I Be Buying At the Peak?
Generally, we don’t want to buy at the market peak, paying more than the home will be worth later. Avoid paying a high price just before home prices decline. However, assessing whether the Bay Area housing market is at its peak right now is difficult.
While higher price homes are stabilizing, this does not necessarily mean the market has reached its peak. Lower tier homes are increasing in price and sale figures show that growth is still happening in the Bay Area housing market.
How Should I Approach Buying or Selling in the Bay Area Housing Market Now?
If you’re looking to buy or sell in the Bay Area market, you need an experienced real estate agent. This can give you an edge in a competitive market and help ensure you get the result you’re looking for. Talk to our team of highly qualified agents today to learn more about the market trends and how you can achieve your dream home purchase or sale now.