Homes Under $500,000 in Bay Area suffer Sales Declines

Properties under $500,000 have become a rarity in Bay Area. In June, single family homes sales price fell about 17 percent compared to the same period in 2016. The reason for this is that only a few homes are available at this price range. At the same time, the empirical sales number of family homes in Bay Area actually went up. This is because the growth of jobs in the area continues to feed demand for properties among the buyers who wield substantial incomes. Most probable buyers are Google and Apple employees.

Significance of data

Property sales went up nine percent year over year for residences over $500,000 all over the region. As per real estate information collated by CoreLogic, these rise in sales at the higher end compensated for the sales drop among fewer available homes found at lower prices.

These reports carry significance. Such data implies that more homeowners will be compelled to move towards the edges of the Bay Area like Vallejo, Tracy, and Stockton. Only these places will be affordable. People staying at these addresses must commute longer to reach their offices situated in Oakland, San Francisco, and Silicon Valley. It will only lead to worsening traffic on the important freeways and major roads. There is a hidden threat, the region is in grave danger of losing the most important workforce- service industry workers, teachers, and office workers. The point has been succinctly made by Roxy Laufer, an agent in Sereno. She said that the economy cannot be run on prosperous people alone. She mentioned a few couples who considered, and then declined, a new address in San Diego as they found themselves priced out of the city.

Statistics

Listings in Santa Clara County are approximately 35 percent less than what they were in July 2016. The inventory at that time was also not much. According to a number of real estate professionals, multiple offers coupled with aggressive bidding are the norm in 2017. To give an example, a single San Jose property attracted 34 bids. The property then sold much above listing price.

Another CoreLogic report stated that June saw a rise of single family homes being sold across the region. This happened despite the inventory being tight. When calculated month to month, the jumps can be seen as quite sharp. The full region has 9.9 percent. Alameda County shows 14 percent and Contra Costa County shows 18.9 percent.

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