Many homeowners in expensive U.S. markets like the Bay Area are delaying a sale in an attempt to maximize their profits, thereby reducing the number of properties on the market and perpetuating price growth.
Home Price Conditions
Home prices increased in nine of 10 U.S. metropolitan areas in the most recently completed quarter, with the Bay Area laying claim to the nation's only two major $1 million-plus housing markets.
The nine-county Bay Area continued to record substantial year-over-year price gains in July, further shutting out more buyers and causing sales activity to spike in some of the region's relatively more affordable markets.
Santa Clara, San Mateo, Sonoma, and Marin counties rank among the nation's 20 luxury housing markets with the highest annual price growth.
Home prices in one high-end Silicon Valley community were up by more than 120 percent from the second quarter of 2017. Check out the 10 Bay Area housing markets with the largest annual home price gains.
A lack of homes for sale continued to drive Golden State prices in June, with the nine-county Bay Area posting double-digit percent annual appreciation for the 12th straight month.
The appreciation recorded in the Golden State over the past few years is paying off handsomely for homeowners, though it also means that real estate markets here are among the toughest in the U.S. for first-time buyers.
Hot on the heels of a report that both California and Bay Area home prices reached new highs in May comes news that U.S. home prices followed suit, once again the result of more buyer demand than properties for sale.
A continued shortage of homes for sale pushed California's median home sales price to a new record for the first time since the previous housing boom, with the Bay Area recording double-digit percent annual growth for the 11th straight month.
Golden State home prices could eclipse their previous peaks within the next few months, while the nine-county Bay Area continued to record double-digit percent appreciation in April, pushing prices just above $1 million.
Sign Up for Daily Blog Updates
Receive daily blog posts from Pacific Union in your inbox.
Sign up for Monthly Market Updates
Receive monthly real estate news from Pacific Union in your inbox.