Rising Housing Costs Hit the Bay Area’s Most-Affordable Communities
- Inventory continued to improve, up by 5 percent from August 2017 after 16 consecutive months of year-over-year declines.
- The Bay Area’s median home price rose by 12 percent on an annual basis. Santa Clara County continued to post nearly double that rate of appreciation, with prices up by 21 percent year over year.
- Affordability concerns are impacting budget-constrained buyers, especially in Sonoma County.
Figure 4 breaks down inventory changes by ZIP code, with red and orange indicating declines and yellow and green indicating increases from last August. For example, green areas suggest an increase between 26 and 77 units compared with last August. Thus, although Sonoma County posted an overall increase in inventory, much of the gain was in the northern part of the county, while Sonoma Valley continued to see large supply declines. Areas with larger increases in inventory — more than 50 units per ZIP code — include communities around south San Jose, Saratoga, Milpitas, Fremont, parts of Oakland, Danville, Livermore, and Dublin. In Sonoma County, most of the increase was in Santa Rosa, which was largely impacted by last fall’s wildfires.
Figure 4: Year-over-year inventory changes by ZIP code
Source: Terradatum, Inc. from data provided by local MLSes, Sept. 7, 2018
Nevertheless, despite slower sales activity and more inventory, home prices continued to increase. In August, the Bay Area’s median prices rose by 12 percent year over year, consistent with the previous month’s increase. Read more on the @bethanywpatten
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