WALNUT CREEK, Calif. (KGO) — Just when you thought the Bay Area housing market might never cool, there’s a new report from Realtor.com that says that’s exactly what could happen in 2020, here and across the country.
According to Realtor.com, 2020 home sales will drop nationwide by 1.8%, but more than twice that–4.5%– in the San Francisco Metro area and down 3% in the South Bay.
Home prices will change less dramatically– up .8% nationwide, but down .4% in the San Francisco metro market and up more than 2% in the San Jose Area.
The Realtor.com report indicates the market will cool because economic uncertainty will prompt consumers to cut back on spending…and inventory will reach historic lows, especially in the entry-level category.
The report also states the slowdown will be prompted in part by Millennials, who drive the buying market, reaching key milestones in their lives, such as turning 30.
“I can’t refute all of it,” said Danville realtor Paul Burgess with Compass Realty. Burgess says the report may be accurate to some extent, but that no one trend or prediction– especially at the national level– applies to all of the micro-markets in the already high-priced Bay Area.
“Our market is very specific,” explained Burgess. “This corridor, which we call 680-24 corridor. We’re seeing buyers coming in from San Francisco, from Santa Clara Valley because we are more affordable. We have excellent schools, quality of life. Starter homes like this one, or even in the higher-priced markets, are a great value.”
Burgess said he and his wife Pat Burgess just listed a 1400 square foot rancher in Walnut Creek for $898,000 and have already had multiple inquiries, including one offer, before holding even one open house.
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