Tight home supply keeps driving up real estate prices in Bay Area and nation

daee5 a2.CA 1319 Montrose Place Pleasanton CA Tight home supply keeps driving up real estate prices in Bay Area and nation

We’ve been hearing the same story, month after month: The tight housing supply is driving competition among buyers, which keeps pushing home prices up.

It’s a national story. The number of U.S. homes for sale sank 13 percent in March compared to one year earlier, marking the 18th straight month of annual inventory declines, according to a report from Redfin. At the same time, said the report, 2017 “remains on track to be the fastest housing market on record.” Nearly a fifth (19.1 percent) of U.S. homes sold in March went under contract within two weeks, and 21.7 percent of homes sold for more than their asking price.

And it’s a Bay Area story. After Denver and Seattle (where newly listed homes spent just eight days on market), Oakland and San Jose were the fastest-moving markets in the nation with 13 and 14 median days on market, respectively. What’s more, Redfin ranked the nation’s most competitive markets like this: No. 1, San Jose, where 69.6 percent of homes sold for more than their listing price; No. 2, San Francisco (66.7 percent); No. 3, Oakland (65.9 percent). No. 4 was Seattle (56.6 percent) and Tacoma, WA (44.4 percent).

In parallel with the 13 percent dip in national inventory, U.S. home prices rose 7.5 percent year-over-year to a median sale price of $273,000.

This was the picture in the Bay Area: In San Jose, where the number of homes for sale fell a whopping 25.9 percent year-over-year, the median sale price rose 11.3 percent to $957,000. In San Francisco, where inventory fell 14.2 percent, the median price increased 8.2 percent to $1,185,000. And in Oakland, where supply fell 12.7 percent, the median price rose 11.6 percent to $650,000.

You can read the Redfin report (which covers single family homes, condos, townhomes and 2-to-4 unit buildings) right here.

This chart shows you how fast-moving the markets are in the Oakland, San Francisco and San Jose (here described as “Santa Clara County”) metros:

daee5 Days on Market 7 450x261 Tight home supply keeps driving up real estate prices in Bay Area and nation

Top: Photo of home for sale in Pleasanton, CA. (Courtesy of Redfin)

 

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Article source: http://www.siliconbeat.com/2017/04/13/tight-home-supply-keeps-driving-real-estate-prices-bay-area-nation/

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