After 20 years in San Francisco, John Perry and Rob Picciotto, along with their children, Ben and Louisa, and three dogs, transplanted themselves to Oakland. “I didn’t think we would ever leave San Francisco, but a convergence of things made us consider moving,” said Perry.

In 1998, Perry and Picciotto had stretched to buy their Bernal Heights house and make it work as their family grew. In June it sold for more than triple what they’d paid, a windfall that allowed them to pay cash for a less expensive house in Oakland’s Leona Heights neighborhood in the hills above Mills College.

“We don’t have a mortgage anymore, which is awesome,” Perry said. “We doubled our square footage on more than an acre of land, and have phenomenal neighbors. Oakland is so diverse; it’s a whole new world to learn and explore. There’s more space, more mix.”

For a growing number of San Francisco residents, the math is compelling. Their houses now are worth more than ever. Meanwhile, although homes in the East Bay have had big price run-ups over the past year, they had fallen further during the downturn – meaning they’re still shy of their peaks.

“San Francisco is on the leading edge of the appreciation curve and other places are a step behind,” said Patrick Carlisle, chief market analyst with Paragon Real Estate Group in San Francisco. “The majority of our San Francisco neighborhoods now have met or exceeded their previous peak values reached in 2007 or 2008.”

Huge price differential

The result is that the price differential between San Francisco and other Bay Area counties, especially the East Bay, is greater now than ever, he said. Silicon Valley’s price appreciation has been strong enough that moving there from the city is more of a lateral move.

For David and Tamra Biener, the rising real estate market meant they could finally trade their cramped Dolores Street condo for a bigger place in the East Bay. With children soon to turn 6 and 8, their family outgrew the two-bedroom condo a couple of years ago – they’d converted the dining room to a third bedroom to make do – but were stuck because they were underwater.

“Our kids running up and down the hallway sounded like a herd of elephants to the people above and below,” he said. “We wanted to move in 2011, but at that time the condo was worth maybe $50,000 less than I’d bought it for. I was thinking, it’s another $50,000 in (real estate) commissions, so it will cost us $100,000 to get out of the condo. We can’t do that because we have to come up with 20 percent down on the new house. It’s supposed to work the other way.”

Way over asking price

But now the tide has turned.

“The crazy thing is that two years go by, we list our house for $50,000 more than I paid and get another $125,000 over listing,” he said.

Listed at $875,000, the house went for just a tad over $1 million. As soon as they were in contract, the Bieners made an offer on a five-bedroom Walnut Creek house with lots of room for the kids. It was listed at $1.285 million; their offer was just $15,000 over asking.

“There are two things going on that favor moving from the city to outside the city,” he said. “The prices have gone up way faster in San Francisco than they have outside of it. And the demand is so much higher in the city that you get that extra 10 or 20 percent over listing.”

Agents around the region said they’re seeing a definite increase in San Francisco out-migration.

“There was a time when you could be a move-up buyer in San Francisco, taking the equity out of your home or condo and buying a bigger one in the city, but that’s not the story anymore,” said Steve Dells, an agent for 25 years with Zephyr Real Estate in San Francisco. “The values in San Francisco have escalated so quickly and so much that whatever a move-up buyer can afford likely won’t be enough space to accommodate their reason for moving.”

Ashley Langworthy and Peter Gleason would have liked to be move-up San Francisco buyers, but the financials didn’t pencil out. With twins on the way, the couple needed more space than their one-bedroom Hayes Valley tenancy in common.

‘Cold foggy areas’

“The places in San Francisco where we could afford more space were in cold foggy areas near the edge of Daly City,” said Langworthy, a landscape designer. “We would have stayed in San Francisco if we could have been in neighborhoods we liked.”

Instead, they looked in the East Bay. However, the competition over there meant they got outbid 10 times and ended up paying above asking for a two-bedroom Berkeley house.

Their Hayes Valley TIC went for almost $100,000 more than the $450,000 they paid for it in 2008, not a windfall but enough to help them get a foothold in a stand-alone house in the East Bay. “I think the East Bay is a little more affordable than San Francisco, but it’s still very competitive,” Langworthy said.

Christine Englund and Dean Charlton migrated from the city to the East Bay because she got a dream job in San Ramon.

“Our house in West Portal is in one of the foggiest neighborhoods in town; 2 miles up from the ocean, you’re totally socked in for the summer,” Englund said. “It’s a two-bedroom one-bathroom, with a little yard, just 1,500 square feet.”

Listed at $799,000, the house got 12 offers and sold in late May for $1.025 million. “We hit just the right time,” Englund said. “Interest rates were still a bit lower than now and inventory was so tight in San Francisco.”

Their East Bay house, located in upscale Piedmont, was cheaper at $905,000 but at least 50 percent larger, with a third bedroom, second bathroom, bigger yard, deck and even a wine cellar.

“We got so much more space for the money, and then the weather, the people, the restaurants, everything we value were also great,” she said.

Fewer school-age kids in S.F.

While the current exodus is too new to have official statistics, longer-range census data underscore San Francisco’s ongoing family drain. San Francisco has about 8,000 fewer school-age youngsters in 2010 than in 2000. Of the city’s 805,235 residents, just 13.4 percent are younger than 18 – a smaller percentage than any other major U.S. city, including the Manhattan section of New York City, where 15 percent of the population is under 18. In San Jose, 24.8 percent of the residents are children; in Oakland, it’s 21.3 percent.

What will it mean to San Francisco if families continue to flee?

Perry, the 20-year resident who recently moved out with his partner and their children, has some sanguine thoughts.

“San Francisco renews itself on a regular basis,” he said. “A lot of cities don’t sustain the same populations through all the stages of (the residents’) lives. There may be different cities for different times in our life.”

Carolyn Said is a San Francisco Chronicle staff writer. E-mail: csaid@sfchronicle.com Twitter: @csaid

Article source: http://www.sfgate.com/realestate/article/Families-flee-S-F-for-East-Bay-with-cheaper-homes-4796027.php

After 20 years in San Francisco, John Perry and Rob Picciotto, along with their children, Ben and Louisa, and three dogs, transplanted themselves to Oakland. “I didn’t think we would ever leave San Francisco, but a convergence of things made us consider moving,” said Perry.

In 1998, Perry and Picciotto had stretched to buy their Bernal Heights house and make it work as their family grew. In June it sold for more than triple what they’d paid, a windfall that allowed them to pay cash for a less expensive house in Oakland’s Leona Heights neighborhood in the hills above Mills College.

“We don’t have a mortgage anymore, which is awesome,” Perry said. “We doubled our square footage on more than an acre of land, and have phenomenal neighbors. Oakland is so diverse; it’s a whole new world to learn and explore. There’s more space, more mix.”

For a growing number of San Francisco residents, the math is compelling. Their houses now are worth more than ever. Meanwhile, although homes in the East Bay have had big price run-ups over the past year, they had fallen further during the downturn – meaning they’re still shy of their peaks.

“San Francisco is on the leading edge of the appreciation curve and other places are a step behind,” said Patrick Carlisle, chief market analyst with Paragon Real Estate Group in San Francisco. “The majority of our San Francisco neighborhoods now have met or exceeded their previous peak values reached in 2007 or 2008.”

Huge price differential

The result is that the price differential between San Francisco and other Bay Area counties, especially the East Bay, is greater now than ever, he said. Silicon Valley’s price appreciation has been strong enough that moving there from the city is more of a lateral move.

For David and Tamra Biener, the rising real estate market meant they could finally trade their cramped Dolores Street condo for a bigger place in the East Bay. With children soon to turn 6 and 8, their family outgrew the two-bedroom condo a couple of years ago – they’d converted the dining room to a third bedroom to make do – but were stuck because they were underwater.

“Our kids running up and down the hallway sounded like a herd of elephants to the people above and below,” he said. “We wanted to move in 2011, but at that time the condo was worth maybe $50,000 less than I’d bought it for. I was thinking, it’s another $50,000 in (real estate) commissions, so it will cost us $100,000 to get out of the condo. We can’t do that because we have to come up with 20 percent down on the new house. It’s supposed to work the other way.”

Way over asking price

But now the tide has turned.

“The crazy thing is that two years go by, we list our house for $50,000 more than I paid and get another $125,000 over listing,” he said.

Listed at $875,000, the house went for just a tad over $1 million. As soon as they were in contract, the Bieners made an offer on a five-bedroom Walnut Creek house with lots of room for the kids. It was listed at $1.285 million; their offer was just $15,000 over asking.

“There are two things going on that favor moving from the city to outside the city,” he said. “The prices have gone up way faster in San Francisco than they have outside of it. And the demand is so much higher in the city that you get that extra 10 or 20 percent over listing.”

Agents around the region said they’re seeing a definite increase in San Francisco out-migration.

“There was a time when you could be a move-up buyer in San Francisco, taking the equity out of your home or condo and buying a bigger one in the city, but that’s not the story anymore,” said Steve Dells, an agent for 25 years with Zephyr Real Estate in San Francisco. “The values in San Francisco have escalated so quickly and so much that whatever a move-up buyer can afford likely won’t be enough space to accommodate their reason for moving.”

Ashley Langworthy and Peter Gleason would have liked to be move-up San Francisco buyers, but the financials didn’t pencil out. With twins on the way, the couple needed more space than their one-bedroom Hayes Valley tenancy in common.

‘Cold foggy areas’

“The places in San Francisco where we could afford more space were in cold foggy areas near the edge of Daly City,” said Langworthy, a landscape designer. “We would have stayed in San Francisco if we could have been in neighborhoods we liked.”

Instead, they looked in the East Bay. However, the competition over there meant they got outbid 10 times and ended up paying above asking for a two-bedroom Berkeley house.

Their Hayes Valley TIC went for almost $100,000 more than the $450,000 they paid for it in 2008, not a windfall but enough to help them get a foothold in a stand-alone house in the East Bay. “I think the East Bay is a little more affordable than San Francisco, but it’s still very competitive,” Langworthy said.

Christine Englund and Dean Charlton migrated from the city to the East Bay because she got a dream job in San Ramon.

“Our house in West Portal is in one of the foggiest neighborhoods in town; 2 miles up from the ocean, you’re totally socked in for the summer,” Englund said. “It’s a two-bedroom one-bathroom, with a little yard, just 1,500 square feet.”

Listed at $799,000, the house got 12 offers and sold in late May for $1.025 million. “We hit just the right time,” Englund said. “Interest rates were still a bit lower than now and inventory was so tight in San Francisco.”

Their East Bay house, located in upscale Piedmont, was cheaper at $905,000 but at least 50 percent larger, with a third bedroom, second bathroom, bigger yard, deck and even a wine cellar.

“We got so much more space for the money, and then the weather, the people, the restaurants, everything we value were also great,” she said.

Fewer school-age kids in S.F.

While the current exodus is too new to have official statistics, longer-range census data underscore San Francisco’s ongoing family drain. San Francisco has about 8,000 fewer school-age youngsters in 2010 than in 2000. Of the city’s 805,235 residents, just 13.4 percent are younger than 18 – a smaller percentage than any other major U.S. city, including the Manhattan section of New York City, where 15 percent of the population is under 18. In San Jose, 24.8 percent of the residents are children; in Oakland, it’s 21.3 percent.

What will it mean to San Francisco if families continue to flee?

Perry, the 20-year resident who recently moved out with his partner and their children, has some sanguine thoughts.

“San Francisco renews itself on a regular basis,” he said. “A lot of cities don’t sustain the same populations through all the stages of (the residents’) lives. There may be different cities for different times in our life.”

Carolyn Said is a San Francisco Chronicle staff writer. E-mail: csaid@sfchronicle.com Twitter: @csaid

Article source: http://www.sfgate.com/realestate/article/Families-flee-S-F-for-East-Bay-with-cheaper-homes-4796027.php

“To put that in perspective,the median realtor income had fallen by 35 percent during the housing downturn, but with the help of sustained increases in both home sales and prices, it’s recovered to the highest level since 2006,” says Paul Bishop, NAR’s vice president of research.

The median gross income of a realtor in 2012 was $43,500, a far cry from the peak of $52,200 in 2002, but the biggest annual gain in over a decade.

“Interestingly, the peak wasn’t during the bubble years, because there were way too many people in the business,” notes NAR president Gary Thomas, a California-based Realtor.

The real estate business is unique, in that most come to the field after other careers, or as a side-business to other jobs. Just six percent of agents now report real estate as their first career.

No surprise then, that the typical age of a realtor is 57; just two percent of them are under 30 — which given the crash is not surprising. 25 percent of realtors are over aged 65.

“I have not seen new people being drawn to the business, but I am seeing agents change firms in pursuit of better split agreements,” says Rick Ambrose, a real estate agent in Morristown, New Jersey. “Quite a few realtors have left the business or become ‘referral agents,’ so they could maintain their license while doing something else.”

With incomes rising, many will likely return to the business. While online real estate sites are gaining traction by the moment, most buyers and sellers, around 89 percent according to the NAR, still use a real estate agent to navigate the process.

—By CNBC’s Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC

Questions? Comments? RealtyCheck@cnbc.com

Article source: http://www.cnbc.com/id/100732611

According to the company, sales of existing, single-family detached homes in the Bay Area fell to their lowest level in five years. Only 9,985 homes changed hands in the first quarter, down 25 percent from 13,391 homes sold in the fourth quarter of 2012 (a difference of 3,406 homes sold) and 16 percent below the 11,906 homes sold during last year’s first quarter. Contra Costa County reported the greatest number of homes sold with 2,182, followed by Alameda County (1,977 homes sold) and Santa Clara County (1,972 homes sold).

Despite the downturn in home sales, demand from homebuyers remained robust, and that led to higher home prices. The Bay Area as a whole reported a median sales price of $667,021 in the first quarter, up 10 percent from the previous quarter’s median price of $604,863 and 25 percent higher than the median sales price of $520,834 reported at the conclusion of last year’s first quarter.

All nine Bay Area counties reported double-digit, year-over-year increases in their median sales price for the second consecutive quarter. San Mateo County led the way with a 43 percent annualized increase, followed by Alameda County (+33%), Contra Costa County (+31%), and Santa Clara and Solano counties, which reported 30 percent year-over-year increases. San Mateo County recorded the region’s highest median sales price at $1,075,097, followed by the City and County of San Francisco at $1,052,626 and Marin County at $878,945. Solano County recorded the Bay Area’s lowest median sales price at $243,006.

Behind the decline in sales and increase in prices is the continued lack of inventory. As of the final day of the first quarter (March 31, 2013), only 4,098 existing, single-family detached homes were listed for sale in the entire nine-county Bay Area – an improvement from 3,370 homes on the market at the end of the fourth quarter of 2012 but nonetheless down 55 percent from 10,282 homes available for purchase on the final day of the first quarter of 2012.

Once listed, homes sold at a brisk pace. For the Bay Area as a whole, homes were on the market an average of 54 days before receiving a final purchase offer, down from 55 days in the fourth quarter of 2012 and 74 days in the first quarter of last year. Homes in Alameda County sold in an average of 29 days, while Napa County recorded the highest average with 94 days on the market.

Looking ahead, what’s the bottom line for Bay Area homebuyers and sellers?

Buyers need to bring their “A” game to the negotiating table, and that increasingly means being able to offer more than the listing price and waive appraisal and other contingencies that may add to the ultimate price. An experienced REALTOR® with extensive local market knowledge and negotiation skills is a must in a market where all-cash offers continue to be a factor.

“Given the likelihood that inventory will continue to be an issue in the months to come, homeowners with mortgages that are “above water” (or nearly so) may find now is a good time to list their home,” says Keith Robinson, COO. “While prices are rising, it is important that sellers price their home competitively. Again, working with an experienced REALTOR® who can help price the property for sale and vet the offers that follow is critical.”

For more information, visit www.bhghome.com.

Article source: http://rismedia.com/2013-05-06/inventory-shortage-means-fewer-home-sales-higher-prices-in-bay-area/

Sales of existing, single-family detached homes in the Bay Area fell to their lowest level in five years. Only 9,985 homes changed hands in the first quarter, down 25 percent from 13,391 homes sold in the fourth quarter of 2012 (a difference of 3,406 homes sold) and 16 percent below the 11,906 homes sold during last year’s first quarter. Contra Costa County reported the greatest number of homes sold with 2,182, followed by Alameda County (1,977 homes sold) and Santa Clara County (1,972 homes sold).

Despite the downturn in home sales, demand from homebuyers remained robust, and that led to higher home prices. The Bay Area as a whole reported a median sales price of $667,021 in the first quarter, up 10 percent from the previous quarter’s median price of $604,863 and 25 percent higher than the median sales price of $520,834 reported at the conclusion of last year’s first quarter.

All nine Bay Area counties reported double-digit, year-over-year increases in their median sales price for the second consecutive quarter. San Mateo County led the way with a 43 percent annualized increase, followed by Alameda County (+33%), Contra Costa County (+31%), and Santa Clara and Solano counties, which reported 30 percent year-over-year increases. San Mateo County recorded the region’s highest median sales price at $1,075,097, followed by the City and County of San Francisco at $1,052,626 and Marin County at $878,945. Solano County recorded the Bay Area’s lowest median sales price at $243,006.

Behind the decline in sales and increase in prices is the continued lack of inventory. As of the final day of the first quarter (March 31, 2013), only 4,098 existing, single-family detached homes were listed for sale in the entire nine-county Bay Area – an improvement from 3,370 homes on the market at the end of the fourth quarter of 2012 but nonetheless down 55 percent from 10,282 homes available for purchase on the final day of the first quarter of 2012.

Once listed, homes sold at a brisk pace. For the Bay Area as a whole, homes were on the market an average of 54 days before receiving a final purchase offer, down from 55 days in the fourth quarter of 2012 and 74 days in the first quarter of last year. Homes in Alameda County sold in an average of 29 days, while Napa County recorded the highest average with 94 days on the market.

Looking ahead, what’s the bottom line for Bay Area homebuyers and sellers?

Buyers need to bring their “A” game to the negotiating table, and that increasingly means being able to offer more than the listing price and waive appraisal and other contingencies that may add to the ultimate price. An experienced REALTOR^® with extensive local market knowledge and negotiation skills is a must in a market where all-cash offers continue to be a factor.

“Given the likelihood that inventory will continue to be an issue in the months to come, homeowners with mortgages that are “above water” (or nearly so) may find now is a good time to list their home,” said Keith Robinson, COO.  “While prices are rising, it is important that sellers price their home competitively. Again, working with an experienced REALTOR® who can help price the property for sale and vet the offers that follow is critical.”

First Quarter 2013 Housing Market Survey – Bay Area Counties

Single-Family Detached Homes

First Quarter 2013 Housing Market Survey – Bay Area Counties

Single-Family Detached Homes

*  Days on market is the number of days a property was listed on the market until it went under

 contract at its final listing price. This may not reflect previous listings.

**The median home price for the entire Bay Area is the mean of median home prices of each of the nine Bay Area counties.  Each county’s median home price is the mean of median home prices of each of the cities within that county.

Data are sourced from multiple listing services and are deemed reliable but not guaranteed.

All percentages rounded to nearest whole number. Bay Area refers to sales within Alameda County, Contra Costa County, Marin County, Napa County, San Francisco County, San Mateo County, Santa Clara County, Solano County and Sonoma County.

## About Better Homes and Gardens Mason-McDuffie Real Estate

Our heritage began with the founding of Mason-McDuffie Real Estate in 1887. In 2010, the company was named the 19th largest real estate services firm in the nation (REALTrends 500), and Number One in the San Francisco East Bay (SF Business Times). The company provides comprehensive solutions to home buyers and sellers, and handled 6,500 transactions in 2012, generating $2.8 billion in sales volume. Better Homes and Gardens Mason-McDuffie Real Estate includes joint ventures with partners Highland Partners in Piedmont and Montclair, Wine Country Group Realtors in the North Bay, and Tri-Valley Realty in Pleasanton-Hopyard and Ruby Hill, and Bahay Co. in Concord. Better Homes and Gardens Mason-McDuffie Real Estate is locally owned and has more than 1,100 real estate professionals with 30 offices in eight counties in the Bay Area and the Tahoe/Truckee region. For more information, go to www.bhghome.com

Article source: http://www.sfgate.com/business/press-releases/article/Inventory-Shortage-Means-Fewer-Home-Sales-4486549.php

Sales of existing, single-family detached homes in the Bay Area fell to their lowest level in five years. Only 9,985 homes changed hands in the first quarter, down 25 percent from 13,391 homes sold in the fourth quarter of 2012 (a difference of 3,406 homes sold) and 16 percent below the 11,906 homes sold during last year’s first quarter. Contra Costa County reported the greatest number of homes sold with 2,182, followed by Alameda County (1,977 homes sold) and Santa Clara County (1,972 homes sold).

Despite the downturn in home sales, demand from homebuyers remained robust, and that led to higher home prices. The Bay Area as a whole reported a median sales price of $667,021 in the first quarter, up 10 percent from the previous quarter’s median price of $604,863 and 25 percent higher than the median sales price of $520,834 reported at the conclusion of last year’s first quarter.

All nine Bay Area counties reported double-digit, year-over-year increases in their median sales price for the second consecutive quarter. San Mateo County led the way with a 43 percent annualized increase, followed by Alameda County (+33%), Contra Costa County (+31%), and Santa Clara and Solano counties, which reported 30 percent year-over-year increases. San Mateo County recorded the region’s highest median sales price at $1,075,097, followed by the City and County of San Francisco at $1,052,626 and Marin County at $878,945. Solano County recorded the Bay Area’s lowest median sales price at $243,006.

Behind the decline in sales and increase in prices is the continued lack of inventory. As of the final day of the first quarter (March 31, 2013), only 4,098 existing, single-family detached homes were listed for sale in the entire nine-county Bay Area – an improvement from 3,370 homes on the market at the end of the fourth quarter of 2012 but nonetheless down 55 percent from 10,282 homes available for purchase on the final day of the first quarter of 2012.

Once listed, homes sold at a brisk pace. For the Bay Area as a whole, homes were on the market an average of 54 days before receiving a final purchase offer, down from 55 days in the fourth quarter of 2012 and 74 days in the first quarter of last year. Homes in Alameda County sold in an average of 29 days, while Napa County recorded the highest average with 94 days on the market.

Looking ahead, what’s the bottom line for Bay Area homebuyers and sellers?

Buyers need to bring their “A” game to the negotiating table, and that increasingly means being able to offer more than the listing price and waive appraisal and other contingencies that may add to the ultimate price. An experienced REALTOR^® with extensive local market knowledge and negotiation skills is a must in a market where all-cash offers continue to be a factor.

“Given the likelihood that inventory will continue to be an issue in the months to come, homeowners with mortgages that are “above water” (or nearly so) may find now is a good time to list their home,” said Keith Robinson, COO.  “While prices are rising, it is important that sellers price their home competitively. Again, working with an experienced REALTOR® who can help price the property for sale and vet the offers that follow is critical.”

First Quarter 2013 Housing Market Survey – Bay Area Counties

Single-Family Detached Homes

First Quarter 2013 Housing Market Survey – Bay Area Counties

Single-Family Detached Homes

*  Days on market is the number of days a property was listed on the market until it went under

 contract at its final listing price. This may not reflect previous listings.

**The median home price for the entire Bay Area is the mean of median home prices of each of the nine Bay Area counties.  Each county’s median home price is the mean of median home prices of each of the cities within that county.

Data are sourced from multiple listing services and are deemed reliable but not guaranteed.

All percentages rounded to nearest whole number. Bay Area refers to sales within Alameda County, Contra Costa County, Marin County, Napa County, San Francisco County, San Mateo County, Santa Clara County, Solano County and Sonoma County.

## About Better Homes and Gardens Mason-McDuffie Real Estate

Our heritage began with the founding of Mason-McDuffie Real Estate in 1887. In 2010, the company was named the 19th largest real estate services firm in the nation (REALTrends 500), and Number One in the San Francisco East Bay (SF Business Times). The company provides comprehensive solutions to home buyers and sellers, and handled 6,500 transactions in 2012, generating $2.8 billion in sales volume. Better Homes and Gardens Mason-McDuffie Real Estate includes joint ventures with partners Highland Partners in Piedmont and Montclair, Wine Country Group Realtors in the North Bay, and Tri-Valley Realty in Pleasanton-Hopyard and Ruby Hill, and Bahay Co. in Concord. Better Homes and Gardens Mason-McDuffie Real Estate is locally owned and has more than 1,100 real estate professionals with 30 offices in eight counties in the Bay Area and the Tahoe/Truckee region. For more information, go to www.bhghome.com

Article source: http://www.sfgate.com/business/press-releases/article/Inventory-Shortage-Means-Fewer-Home-Sales-4486549.php

Tuesday’s SP/Case-Shiller report underscored the rapid run-up in Bay Area home prices, showing that the San Francisco metro area — Alameda, Contra Costa, Marin, San Francisco and San Mateo counties — saw home prices surge 17.5% in January compared to a year ago. That outpaced the national run-up of 8.1 % and was second only to Phoenix.

For a detailed analysis of the numbers and what they mean for the Bay Area, click here.

Bidding wars and multiple offers are the new norm here.

Here’s a look at a San Jose house listed for $1,075,000 that sold for $1,120,000. Redfin agent Ashley Rabello said she had four offers within the first day of listing. The winning offer had no contingencies, a large percentage down, and was significantly higher than the asking price.

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Heavy action at all price points is new — and another harbinger of recovery.

“During the boom and bust, the lower-priced houses had the biggest percentage price increases and then the biggest percentage collapse,” said David Blitzer, chair of the index committee for SP/Dow Jones. That’s because the most-outrageous lending practices — subprime loans, liar loans, no money down — were more concentrated in the low end.

Case-Shiller tracks homes at three price tiers — low (under $383,942), middle ($383,9422 to $681,776) and high (over $681,776). “Until the boom, the three moved together; during the downturn, they spread apart,” Blitzer said. “Now they’re moving in sync again; it’s a sign the market is coming back to normal, behaving a lot less bizarrely than it did before.”

Carolyn Said is a San Francisco Chronicle staff writer. For insights and news on the real estate market, follow her on Twitter: @csaid

Article source: http://blog.sfgate.com/ontheblock/2013/03/27/the-incredible-soaring-bay-area-home-prices/