Bay Area Real Estate | What I Wish Everyone Knew
The Bay Area is a metropolitan region surrounding three major cities: San Francisco, Oakland, and San Jose. As one of the most coveted places to live in, this piece of land is defined by stunning architecture and vibrant cities. The real estate market of the Bay Area continues to attract more people and tourists, converting them into residents, despite having costly prices.
If you are hoping to invest in the Bay Area Housing Market, don’t let the costs stop you! However, before making any abrupt decision, you should learn a few things about the market! So, here are some things you need to know about the bay area real estate market.
A Detailed Guide About Bay Area Real Estate
There are a number of factors that can determine a property’s value! From its location to the architectural style, all these elements affect the worth of a place and can fluctuate with time.
Due to the pandemic that has taken the world by storm, the side effects have taken a massive impact on the Bay Area housing market too. Since people have been spending more and more time at home in the San Francisco Bay Area, the real estate industry has experienced an increase of 34.4 percent in sales.
The San Francisco housing market did face several issues recently, there have been many leaving the big city to find more affordable housing and a larger space. This is primarily due to working from home and no longer commuting, and distant learning, and the whole family being home.
The average house price of a single-family home in San Francisco is over $1.6 million.
Even though San Francisco is currently one of the top markets, it still seems to be facing the decline of rental prices. The main reason for this decline is that people no longer want to live in populated areas. People would rather live in a more private space and enjoy their own outdoor area instead of sharing them with other residents, for a better price.
Oakland’s Real Estate Market
Investing in the real estate market of Oakland has been nothing but advantageous for over a decade now. This was proven during the end of 2020 when the number of people looking to buy a house were more significant than the actual number of homes available.
The best thing about Oakland’s real estate market is the lower cost of living (compared to San Francisco) without having to give up on the posh lifestyle of the Bay Area. Compared to other Bay Area cities, Oakland can be a cheaper alternative than the peninsula and San Francisco.
While every other place in the Bay Area saw a huge drop in the rental prices during the pandemic, Oakland didn’t! in fact, several property owners took advantage of the situation and increased the rent and improved their cash flows.
This means that the local real estate market will prove to be beneficial to property owners who have rental properties In Oakland, the demand has increased! Oakland’s home pricing starts from $780,000 to $950,000. Neighborhood cities can play a massive role in boosting home values. The costliest neighborhoods here are Piedmont, Claremont, Crocker Highlands, Panoramic Hill, and Upper Rockridge.
Bay Area Real Estate: The East Bay
The East Bay Area Real Estate Market is another sellers’ market! Alameda’s median market pricing starts from $925,000, whereas the Contra Costa Country pricing starts from over $730,000. The East Bay market has become more appealing to the people during the pandemic, especially for the employees of Silicon Valley, as they are no longer commuting. There may be shifts again once people return to working in the office.
Interest rates, fuel prices, raw construction material and many commodities are increasing in price in the East Bay and it is having an impact in the economy! Citizens are moving to Suburbs, and people of Suburbs areas are choosing to move to a place with lower living costs. The Single-family homes in the East Bay are selling faster. In fact, some were even sold in less than a week in cities all over the Bay Area.
Everyone seems to be in a rush and things are changing drastically.
To sum it up, the East Bay housing market is highly competitive and fast-paced!
What’s Next for the Bay Area Real Estate Market?
It ended up being a good year for the Bay Area housing market, as many predicted. The San Francisco Bay area posted an increase of 16.6 percent over the last year for single-family homes. The most important thing that happened in the real estate market is that prices have soared, and inventory is minimal.
If you are planning to buy a property in the Bay Area, you should know that open houses or other group tours are a no-go because of Covid-19. The state has advised real estate professionals to show properties only to households or individuals. It is very limited to access homes at this time.
Such simple yet effective steps are allowing the Bay Area housing market to move forwards while safeguarding people and their health.
Sellers are determining their home prices based on careful market research. However, due to the increasing demands, prices keep going up because most properties are getting multiple offers that are sometimes $100,000 over the asking price. These prices are disrupting the market dynamics and it is unknown how long this will last.
However, if you`re looking to invest in the Bay Area real estate, not only is this the right time, but you also have the right realtor by your side to help you with all your undertakings.
Conclusion, About Bay Area Real Estate
At this time, the experts of the Bay Area housing market are looking at a bright future. For a very long time, the Bay Area has been a goldmine for investors, it has been a seller`s market, and this trend may continue as people are looking for more opportunities to find suitable properties to buy in this market.
Due to the gorgeous serenity and lifestyle of the Bay Area, people cannot stop themselves from buying a property and live a luxurious life there. However, if you are planning to buy a real estate property in the Bay Area, we would recommend you spend some time searching first and work with a market expert!
If you have any questions regarding the topic, feel free to ask in the comment section below! Do leave us your feedback if you liked our blog.