Bay Area Suburbs Now Nation's Hottest Market
If you could choose a hot market to sell in, wouldn't you like to be THERE? Well, in the case of the Bay Area suburbs, delay no further. You're THERE!!
Demand for Northern California real estate remains as intense as ever, with relatively affordable Bay Area bedroom communities commanding the most interest in the country in May.
Realtor.com ranks the Vallejo-Fairfield metropolitan area as the nation’s hottest housing market in May based on a combination of the most listing views on its website and the quickest paces of sales. The Solano County suburbs edged out the San Francisco-Oakland-Hayward metro area, which fell to the No. 2 position on the list after six consecutive months in the top spot.
With a median list price of $425,000, homes in Vallejo cost less than half of what they do in San Francisco, where properties listed for a median price of $880,000 in May. Buyers snapped up homes in San Francisco in an average of 24 days, the fastest rate of sales in the country, compared with 30 days in Vallejo.
Santa Rosa retained the No. 4 spot on Realtor.com’s list, with a median-priced $678,500 home selling in an average of 34 days. San Jose dropped to No. 9 and remained the most expensive of the 20 cities included in the study, with median-priced homes listing for $980,000 and finding a buyer in 25 days.
As in the previous month, half of May’s hottest U.S. real estate markets were located in California, including Stockton (No. 5), Sacramento (No. 7), San Diego (No. 8), Santa Cruz (No. 15), Eureka (No. 16), and Modesto (No. 18). With a median list price of $325,000, Modesto is the Golden State’s least expensive hot market in which to purchase property, but costs there are still $75,000 higher than they are nationwide.
The current $250,000 U.S. median home price is the highest since Realtor.com began tracking statistics in 2013. Realtor.com Chief Economist Jonathan Smoke attributed the price growth to bottled-up demand and mortgage rates that are near their yearly lows. According to Freddie Mac, 30-year, fixed-rate mortgages averaged 3.64 percent for the week ended May 26, up slightly from the previous week and lower than they were one year ago.
A lack of homes for sale — a particular issue here in the Bay Area — is also fueling national home price
Now, granted, these hottest spots cited in the aforementioned info are a bit further to the north. But, never fear--there is a 'spill-over' effect that has hit prices in northern Marin. That may sound a bit exciting--or scary--depending if you're a buyer or seller, but these numbers were historical. They only include property sold and closed through the end of May--nearly two weeks into your collective rear view mirror. The market has definitely changed in recent weeks, with the furnace heat of early spring moderating a bit. We are still seeing a few multiple offers, but not as all encompassing as previously. With this moderation, prices have eased as well.
So, what does this mean for you? Sellers: you can still sell for a good price, IF you act reasonably in pricing your home. Unless you just bought late last year, you'll likely come out ahead. Buyers: The gradual easing means you may be able to get a better deal with less competition going forward. Rates have not gone up, and the FED indicates it plans to moderate any upward trend, so you can still afford to finance your dream home.
Need advice? Call us: Peter: (415) 279-6466; Jane: (415) 531-4091.