The housing market in the San Francisco Bay Area continues to be a hot topic, and with good reason. New data reveals a significant increase in year-over-year prices, making it the region with the biggest jump in the state.
Home prices in the Bay Area climbed 11.9% in May 2024 compared to May 2023, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported. Let’s delve deeper and see how this increase played out across different counties.
County-by-County Performance
The story varies across counties. Here’s a detailed breakdown:
In Alameda County, the median sold price of existing single-family homes in May 2024 was $1,375,000. This is 1.9% below the April 2024 level and a mighty 9.1% above last May. Sales were good in Alameda, at 12.6% more than the previous month and up by 6.1% over the same month in 2023.
Prices in Contra Costa County took a slight 0.3% jump from last month, with the median price hitting $942,500 in May 2024. This was 6.1% more than was posted last May. Sales also perked up with an increase of 9.2% since April 2024 but a mild 0.4% increase from last year.
Marin County: Here, the median price at which properties were sold rose by a massive 5.9% from April 2024 to May 2024, reaching $1,800,000. However, this was on par with the values of May 2023. Sales made here took a giant leap, surging to 28.7% every month and even by 5.1% compared to last year.
The median sold price in Napa County was up 3.9% month-over-month to $987,000 in May 2024, representing an 11.1% increase year-over-year. Despite the price gains, sales in Napa decreased by 11.9% from April 2024 and 7.5% year-over-year.
San Francisco County saw the median sold price decrease by 6.1% from April 2024 to $1,690,000 in May 2024. This is still up by 2.2% from May 2023. Sales in San Francisco increased modestly by 1.8% on a month-over-month measure and intensified further with 20.4% more sales than the year-over-year figures.
San Mateo County: This region continued being one of the most expensive in terms of median price since the one it had was $2,400,000 in May 2024. This is an essential raise about April 2024 since it is equal to 11.6%, and as far as May 2023, it is equal to 15.7%. Sales increased: 11.5% from last month and 13.4% from the previous year.
Santa Clara County: The median sold price for May 2024 was $2,100,000, up 5.0% from last month and a robust 17.4% increase from one year ago. Sales were brisk, too, up 14.2% versus last month and 13.7% versus one year ago.
The median sold price in Solano County rose 2.5% month-over-month to $605,000 this May 2024. This is a slight 0.8% rise from May 2023. Sales in Solano dropped -0.7% from last month, April 2024, and were down 20.3% year-over-year.
The median price paid for a home in Sonoma County last month came in at $880,450, which was up 3.6% from April and 2.4% higher than last May. Sales also fared better last month, up 8.5% from April but 0.6% lower than last May.
These statistics only underscore how diverse the San Francisco Bay Area housing market truly is dependent upon the county one reads. As price and sales growth continue to be very impressive in places such as San Mateo and Santa Clara, the relative results in counties such as San Francisco and Napa remain substantially more mixed.
Overall, the data paints a picture of a robust market in most Bay Area counties, with San Mateo and Santa Clara leading the surge. However, there are pockets like Marin County where the market appears to be stabilizing.
What’s Driving the Increase?
Several factors contribute to the rising prices in the Bay Area. A key driver is classic supply and demand. There’s a continued shortage of available homes, especially single-family dwellings. This scarcity pushes prices upward as buyers compete for a limited pool of properties. Additionally, the robust tech industry in the region fuels buyer demand. With high salaries and a thriving job market, many tech professionals are drawn to the Bay Area. This influx of well-qualified buyers further intensifies competition and puts upward pressure on home prices.
Is it a Buyer’s or Seller’s Market?
Given the substantial price increases and limited inventory, the Bay Area market currently favors sellers. With more buyers competing for a smaller pool of homes, sellers have the upper hand. This translates to several advantages for sellers. They are likely to receive multiple offers, potentially above the asking price. They may also have more flexibility with negotiating closing costs and other terms of the sale. In a seller’s market, homes tend to sell faster, too. This means sellers can avoid the carrying costs of an extended listing period.
What to Consider if You’re Looking to Buy
If you’re contemplating buying a home in the Bay Area, it’s crucial to have a well-defined strategy. Here are some pointers:
- Get Pre-Approved for a Mortgage: Having pre-approval demonstrates to sellers that you’re a serious buyer and strengthens your offer.
- Work with a Real Estate Agent: An experienced agent can guide you through the competitive market, navigate the complexities of the buying process, and help you find a home that meets your needs and budget.
- Be Prepared to Move Quickly: In a fast-paced market, homes can sell within days of being listed. So be ready to act swiftly when you find a property that interests you.
Feel free to connect with the McCarthy + Moe Group for expert advice and support in mastering the ever-evolving real estate market. Whether you’re buying or selling, we’re here to help you achieve your real estate goals with confidence.
Source: noradarealestate.com