San Francisco News
Bay Area real estate experiences across-the-board gains18 Mar 2013 11:54 AM
Demand for homes in the Bay Area has surged in the past few months, and inventory is dropping and prices are rising as a result. According to the San Jose Mercury News, the pace of the recovery of San Francisco's housing market has been accelerating recently, which has sapped the region's supply of for-sale homes.
According to the source, demand has climbed rapidly in the last several months, prompting fiercer competition for San Francisco real estate. Price gains are up more than ten percent year-over-year, rents are soaring and there has been an influx of foreign buyers, the source reports.
Unsurprisingly, this surge in demand has led to a dwindling inventory.
"The forces of supply and demand seem to be exacerbated here right now," Svenja Gudell, senior economist at Zillow, told the San Francisco Chronicle. "We're happily surprised by how well [the market] is doing and how much it's picking up steam."
These gains are especially apparent in the luxury homes market, the source reports. Multi-million dollar homes in areas like Noe Valley, Atherton and Palo Alto are all undergoing periods of rising demand and shrinking supply. According to the source, the inventory of for-sale homes in the Bay Area has declined more steeply than almost anywhere in the country - there are only about 5,000 homes for sale in the region now, which is 60 percent fewer than the 13,000 homes on the market at this time last year.
The dwindling supply is closely tied to rapidly rising property values. According to DataQuick, Bay Area home sales were at their highest level in six years during January. Sales volume wasn't the only metric that experienced an increase in January, however, as the month marked the 10th consecutive year-over-year uptick in median sales prices.