Thinking of moving to the Bay Area this year? We don’t blame you! The Bay Area is a beautiful place to live. According to The Pacific Union(1), the Bay Area’s housing market is currently one of the hottest in the USA! Consisting of major metropolitan areas such as San Jose, San Francisco, and Oakland, and other smaller rural and urban areas, it is no wonder that the Bay Area is considered one of the most beautiful places to live.
The Pacific Union and consulting firm John Burns Real Estate Consulting (JBREC)(2) have joined forces to create a housing market report that examines the future of the California Bay Area’s economy and residential real estate market.
Highlights From The Housing Report
- Real estate prices may be high now, but the rate of annual price appreciation in some Bay Area regions will eventually slow down from its current rate of 8% to approximately 1-4% over the next couple of years.
- The Bay Area’s housing market may be in high demand, but prices are close to peaking.
- Currently, job growth is exceeding faster than population growth across the Bay Area – particularly in San Francisco and San Jose – which is ultimately driving up demand in real estate.
- Silicon Valley has one of the highest median incomes in the USA and these incomes are only projected to rise.
- While the demand for housing in California is high, there is a limited number of new houses being built in this area.
Bay Area homes are continuing to slowly rise and gain value over time because demand is high without there being enough supply. This means that even though the annual appreciation will eventually slow down, if you are thinking about selling your home in the California Bay Area, you can expect a large return on your investment.
Madeline Schnapp, a Trukee-based firm’s director of economic research states(3), “Prices can continue to skate higher for awhile but at some point you run out of people willing to pay, and prices adjust.” While sales in real estate may be a bit sluggish for now, it is expected that the price appreciation should decelerate later in 2017. According to Schnapp, it is predicted that the California Bay Area will continue to see slower sales and higher prices until prices adjust and coincide with supply and demand or if new houses enter into the market.
At Pacific Realty Partners, our goal is to help you achieve yours! If you’re looking to sell or purchase a home in the California Bay Area, make sure to contact PRP, your real estate experts!