Bay Area and national real estate markets show continued strength

With “The Big Short” a hit in local cineplexes, people may once again be thinking about bubbles that can burst. But a new report from the CoreLogic real estate information service indicates continued strength in the housing market.

The service’s latest numbers show that home prices rose 6.1 percent nationwide between November 2014 and November 2015. And it predicts that prices will rise another 5.2 percent by November 2016. The data takes all homes into consideration: single family homes, townhouses and condominiums but does not include distressed sales.

In the San Francisco-Redwood City-South San Francisco area, CoreLogic charts a 15.7 percent year-over-year increase between November 2014 and November 2015. It puts the year-over-year increase at 8.6 percent in the San Jose-Sunnyvale-Santa Clara area, and at 9.7 percent in Oakland-Hayward-Berkeley.

A detailed report covering more parts of the Bay Area region will be released later this month.

The Bay Area’s tight inventory continues to put pressure on housing prices, which are unaffordable for many.

“Many factors, including strong demand and tight supply in many markets, are contributing to the long-sustained boom in prices and home equity, which is a very good thing for those owning homes,” said Anand Nallathambi, president and CEO of CoreLogic, in a written statement. “On the flip side, prices have outstripped incomes for several years in a number of regions so, as we enter 2016, affordability is becoming more of a constraint on sales in some markets.”

Contact Richard Scheinin at 408-920-5069, read his stories at www.mercurynews.com/richard-scheinin and follow him at Twitter.com/RealEstateRag.

Article source: http://www.mercurynews.com/business/ci_29347092/real-estate-continued-strength-housing-market

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