Bay Area Claims Four of the Five Priciest U.S. Real Estate Markets in 2017

Bay Area Claims Four of the Five Priciest U.S. Real Estate Markets in 2017

In what will come as little surprise to anyone who regularly follows Bay Area real estate, four local communities rank among the most expensive real estate markets in the country this year.

That’s according to Forbes’ annual list of America’s most expensive ZIP codes, which uses a 90-day rolling average for the period ended Oct. 27 and includes both single-family homes and condominiums. Atherton‘s 94027 is once again the nation’s most expensive place in the U.S. to buy a home, with a median sales price of $9,686,154. The San Mateo County city had held that title for several years running before losing it to Manalapan, Florida last year, which took the No. 2 spot on this year’s list.

Why Do Bay Area Homeowners Sell, and Where Do They Move?

Why Do Bay Area Homeowners Sell, and Where Do They Move?

A lack of homes for sale is the Achilles’ heel of Bay Area housing markets. Industry experts and economists have consistently discussed falling inventory levels since 2012, when most of the region’s distressed inventory was absorbed. Since then, inventory levels, while fluctuating, have been on an almost constant decline. Over the last year, the monthly year-over-year supply decrease averaged 7 percent in the Bay Area. More importantly, affordable homes are disappearing at double that rate.

Luxury Segment Heats Up Bay Area Housing Markets

Luxury Segment Heats Up Bay Area Housing Markets

The first half of the year ended on a strong note for Bay Area housing markets, with 2 percent more sales in the first six months of the year when compared with last year. The East Bay saw the largest increase in sales activity, up 4 percent, while San Francisco followed with a 3 percent increase. San Francisco’s improving housing market conditions are particularly encouraging given the lull that the city faced last year.

Sizing Up the Competition: How Many Offers Are You Betting Against?

Sizing Up the Competition: How Many Offers Are You Betting Against?

Pacific Union’s recent second-quarter real estate reports showed that Bay Area housing markets are sizzling again, and buyers are facing tough competition. Overall in the Bay Area, 6 in 10 homes sold over the asking price in the second quarter, while in Alameda and San Mateo counties, almost 8 in 10 homes sold over the asking price. Naturally, some price ranges were in greater demand than others. For example, in the East Bay, competition increased for homes priced up to $2 million but cooled off for higher-priced homes.

Changing of the Tide?

Palo Alto has always been fashion-forward when it comes to real estate trends. Having worked in residential real estate in this area for 8 years, I have found that the Palo Alto housing market serves as a compass when it comes to trying to predict the next real estate pattern. Over time the neighboring cities, Menlo Park, Los Altos, Redwood City and San Carlos, will often mirror the market ebbs and flows experienced in Palo Alto.