If you knew that a global pandemic and recession were coming in early 2020, you probably would have thought that real estate prices would decline. To the surprise of many, the exact opposite happened.
Nationwide home prices increased 23.4% over the past year. That’s nearly the highest increase on record, second only to May, 2021:
Real estate across the country has done phenomenally well. But how has the unique Bay Area market done in comparison?
In this summary we’ll review the two most important factors driving real estate: supply and demand. The data is through June, 2021, and reviews statistics related to single family homes in Santa Clara County, San Mateo County, and San Francisco County.
As compared to a year ago, housing inventory, which measures supply, has plummeted:
With the stock market at all-time highs and many Bay Area companies going public, getting purchased, or getting funding, many employees in technology are wealthier than ever before.
This has led to an increase in demand for single-family homes, which have become more sought after as a result of the pandemic.
Over the past year, prices have appreciated nearly 25% in Santa Clara County, 19% in San Mateo County, and almost 8% in San Francisco County:
Price per square foot is also on the rise:
The limited supply and influx of demand has led homes to selling faster than ever. A year ago, homes in these counties would sell in approximately three weeks. That timeline has declined markedly across the board:
It has never been easy or cheap to purchase a home in these counties, but over the past year it has become even harder. While it’s unclear if these trends will continue, the one thing that is clear is this: it’s a seller’s market.
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Disclaimer: The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material is presented solely for information purposes and has been gathered from sources believed to be reliable, however Think Different Financial Planning cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Think Different Financial Planning does not provide tax or legal advice, and nothing contained in these materials should be taken as such. As always please remember investing involves risk and possible loss of principal capital. Advisory services are only offered to clients or prospective clients where Think Different Financial Planning and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Think Different Financial Planning unless a client service agreement is in place.Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings.