The frantic run-up in Bay Area home prices is expected to settle down in the coming months as a result of three factors seen in real estate markets nearby and nationwide: rising mortgage rates, expanding inventory, and declining investor demand.
A recent home-affordability report shows that prices continue to rise beyond the reach of most Californians, but houses are still a bargain when compared to six years ago, when only 11 percent of the state’s residents could afford to buy a home.
Things are coming up golden for homeowners in the Golden State, as median sale prices rocket to heights not seen since 1980.
April home prices continued to post solid gains across the Bay Area and the Tahoe/Truckee region in April, with the median price for single-family homes reaching $1 million in San Francisco for the first time in more than five years and the median price in our Sonoma Valley region jumping 65 percent over the past year.
Bay Area home prices continued to climb higher in March, with the median price of all sales up 33 percent from a year earlier, according to the California Association of Realtors. All nine Bay Area counties posted double-digit increases.
A recent survey of U.S. banks found that lenders are bullish on the housing recovery and confident that home prices are rising at a sustainable pace.
Recent news of interest to homebuyers, home sellers, and the home-curious includes a promising report that tight mortgage standards will loosen in 2013. Also, government data suggests home prices will continue to rise for at least another five years, and the Federal Reserve says Americans have finally recovered the $16 trillion in wealth they lost during the recent recession.
An increased number of high-priced homes for sale and a shortage of lower-priced homes combined to drive December home prices up significantly in the Bay Area and all of California.
CoreLogic was the first research firm to publish a full analysis of the 2012 housing market, and it confirms the good news we’ve been reporting for months now: Home sales and prices are rising, new-home construction is back on track, and foreclosures are down dramatically.
The National Association of Realtors says 2012 will set a record for housing affordability as home prices hit bottom and mortgage rates set record lows. And 2013 won’t be far behind in terms of purchasing power.