Housing markets remain hot throughout California’s San Francisco Bay Area, according to a recent SF Bay Area Market Update blog by Kinoko.
While home supply remains low, bidding wars and rising prices can be expected to continue. In addition, a spike in home buying could be expected as buyers seek to purchase before mortgage rates rise, as mentioned in the report.
“Currently, the housing supply is so low that the demand far outpaces the number of homes on the market. The pandemic changed the direction of consumer spending from a focus on services to a focus on physical goods. It also accelerated the rate at which people built savings. With the addition of hyperlow mortgage rates, homebuying became more accessible to a higher number of people in 2020.” – Kinoko
Demand for Single-family homes strongly outweighs the available supply throughout the Bay Area, resulting in continued accelerating home prices of 9% year-over-year for March 2021, as displayed in the below image.
Overall, demand for condominiums has come back strong throughout San Francisco as recent sales have outnumbered new listings in March 2021, according to the report. Prices have risen slightly month-over-month, but remain 2% lower compared to this time last year.
In addition, the number of days on the market still remains comparatively low at roughly 3 months signifying continued demand for both single-family homes and condominiums throughout San Francisco.