Home Prices Soared in the Bay Area During the Pandemic
A recent article in the San Jose Mercury has revealed that home prices in the Bay Area have soared during the pandemic and especially during the holiday season.
The market has become a booming seller’s market, with home sales and prices skyrocketing during December. Median home prices have gotten so high that they are nearing record levels.
According to the Mercury:
“The median price of an existing home in eight Bay Area counties rose 13 percent from the previous December to $935,000, according to CoreLogic and DQNews. Sales and median prices soared throughout the region, led by San Francisco, up 19 percent to $1.55 million; Contra Costa County, up nearly 18 percent to $725,000; Santa Clara County, up almost 11 percent to $1.27 million; and San Mateo County, up 10 percent to $1.5 million.”
Although Alameda County did not report home sales data for December, home prices there have exceeded $1 million for over six straight months.
Why exactly is this happening? It’s simple. Expensive homes are still a hot commodity in the Bay.
According to CoreLogic chief economist Selma Hepp, white collar workers who have not been as affected by the pandemic and its gruesome toll on the economy, are more likely to continue buying homes. The only county in the Bay Area where home sales were not as hot, she said, was Solano County. What makes Solano so unique? It’s the most affordable county in the Bay Area.
Still, even more affordable homes are selling, as well. Condo sales were up 36%, as well. This is likely due to buyers deciding to “pull the trigger” on buying a home after delaying it for months during COVID.
“Bay Area agents say the continued demand for more space and new surroundings, coupled with historically low interest rates and scant inventory, is fueling the market. A booming stock market has boosted incomes for techies with compensation based on equity grants.”
It seems as though quarantine has made people tired of their homes and is forcing them to look for new surroundings.