SAN JOSE, Calif. (KGO) — We’ve all heard that Bay Area housing prices are out of control and higher than they’ve ever been. It’s true, and it’s a story we’ve all been seeing for years. But experts are saying that this spring is going to take everything to a whole other level.
“With everything being as high as it is, we have to make the tough decision between: do we pay $3,500 to rent or do we spend over a million dollars to buy a house?” First-time home buyer Ben Zorn said. “It’s crazy right now.”
“What’s happening is, only the people who can really afford houses in the South Bay area are getting into them,” Intero Real Estate Salesperson Jim Mauldwin said. “People who are just hopeful, they’re probably not going to have a great opportunity to get into a house at retail.”
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Homes are selling at record prices and their values are only growing.
According to Redfin, more than 45% of homes sold in San Jose went for at least $100,000 over asking from January 1 to February 15; 29.8% in Oakland went over $100k and 40% in San Francisco.
Meanwhile, while the median income in San Jose is $93,000, Zillow says homes values increased more than an average of $229,000 over the span 2021.
“We’ve gone through crazy markets before, this one seems to be a little bit different than others,” Santa Clara County Association of Realtors President Doug Goss said.
This year is already off to a record start, but springtime is typically the best time to sell your home.
High demand, low supply. So the question is, will this spring selling season be the craziest one ever?
“It’s going to be the craziest spring in home buying,” Mauldwin said. “It’s the craziest January, February, March that I’ve ever seen in 30 years of selling real estate.”
Obviously, this means these experts say it’s a great time to sell.
But when will it be a good time to buy?
Federal Interest rates have just gone up and that is not expected to dip costs. There’s also still record-low inventory with only around 1,000 homes for sale currently in Santa Clara County.
“When you get to about 1,800, 2,000 to 2,500, the market will subside a little bit and it will be more in the buyers favor at that time,” Mauldwin said.
So in the mean time, what’s their best advice to home buyers?
“You need to be in a position where, in your mind you’re thinking, ‘I won’t lose’,” Mauldwin said. “Because the winners in this market are the ones who won’t lose. They’re not somebody who has a really good offer.”
“You’ll be able to get into a property,” Goss said. “It just may take you a lot longer than typically.”