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Bay Area Home Sales, Home Prices Climbing

Sat, 17 Aug 2013 11:27:33 +0000

SAN FRANCISCO (CBS SF) – If you’re planning on purchasing a home in the Bay Area soon, you may be up against steep competition.

According to San Diego-based company DataQuick, house and condo sales throughout the Bay Area in July were the highest since 2005.

A total of 9,339 sales were finalized, up 13.3 percent from July 2012, when 8,241 homes were sold, according to DataQuick.

The sales were at its highest since 12,538 homes sold in July 2005, the data company stated.

The spike in sales was most evident in Santa Clara County, where 2,244 homes were sold, 26.1 percent more than the 1,779 from July last year.

In San Francisco, 718 homes sold last month, up 31.3 percent from last July’s 547 sales.

Solano County was the only Bay Area county that recorded fewer sales this July from last, totaling a 0.8 percent decrease, from 610 last year to 605 last month.

With the rise in sales, the median price of homes in the Bay Area has also increased, reaching its highest price in more than five and a half years.

In July, the median price was $562,000, the highest since December 2007 when homes were averaging a price tag of roughly $587,500, according to DataQuick.

Twelve months ago, the median price of homes in the nine-county region was 33.5 percent less, averaging roughly $421,000 per sale.

All counties throughout the Bay Area recorded an increase in median sale prices, but none more than in Contra Costa County, which had its median sale price rise nearly 43 percent from $308,000 to $440,000, according to DataQuick.

Article source: http://sanfrancisco.cbslocal.com/2013/08/15/bay-area-home-sales-home-prices-climbing/

Inventory Shortage Means Fewer Home Sales, Higher Prices in Bay Area

Tue, 07 May 2013 02:37:35 +0000

A chronic shortage of homes on the market added up to fewer homes sold and sharply higher home prices across the entire nine-county San Francisco Bay Area in the first quarter of 2013, according to an analysis of MLS data by the research division of Better Homes and Gardens Mason-McDuffie Real Estate.

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/

Inventory Shortage Means Fewer Home Sales, Higher Prices In Bay Area

Mon, 06 May 2013 08:31:42 +0000

Pleasanton, CA. May 1, 2013. A chronic shortage of homes on the market added up to fewer homes sold and sharply higher home prices across the entire nine-county San Francisco Bay Area in the first quarter of 2013, according to an analysis of MLS data by the research division of Better Homes and Gardens Mason-McDuffie Real Estate.

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).

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

Inventory Shortage Means Fewer Home Sales, Higher Prices In Bay Area

Sat, 04 May 2013 02:08:17 +0000

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.

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

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

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

Thea Miller Comments on Growing Luxury Real Estate Market

Tue, 12 Feb 2013 05:02:05 +0000

SAN FRANCISCO, Feb. 11, 2013 /PRNewswire-iReach/ — Business Insider has recently shed light on the “hottest” luxury real estate markets across the United States. San Francisco joins New York, Los Angeles, Miami, and Washington, DC on this collection of growing markets in the luxury real estate industry. Thea Miller , a sales and marketing professional who specializes in luxury properties, comments on the growth of the San Francisco market.

“As the Bay Area‘s housing market continues to heat up once again, it’s catching the attention of the media—and it is shining a spotlight on the rebound that the market is making,” comments Thea Miller . “In a front-page story in the Chronicle, titled ‘Bay Area Home Sales, Prices Surging,’ reporter Carolyn Said explores the extremely strong housing numbers that were released by DataQuick, which is a La Jolla-based information services company. She has examined the catalysts of the housing turnaround. DataQuick, in its monthly report, asserts that the median sale price for Bay Area properties in December rose to $442,750, a stunning 32 percent increase from a year ago and the largest jump in 25 years of record keeping.”

Miller goes on to explain that, according to the article, sales increased year-over-year for the 18th month in a row, ultimately climbing 4.5 percent in just the last month. She cites CaliforniaMoves.com data reporting that San Francisco and Santa Clara County achieved double-digit sales growth year over year with 29.5 percent and 13.1 percent increases, respectively.

“It’s good to see that Bay Area news and other media are on top of this story, but what’s especially gratifying is that they’re getting out the message that we have a severe shortage of homes for sale in the region and sellers are getting good prices for their homes once again,” asserts Miller. “My hope is that homeowners who have been sitting on the sidelines will begin to realize that this market presents a tremendous opportunity for them to get top dollar for their home. Right now, it’s a red-hot seller’s market. But as we know, it won’t always be that way. If traditional patterns apply this year, there will be some added inventory in March and April. This will bring more opportunities for buyers, but it will also incite additional competition between sellers, compared to the way the market stands today.”

Miller encourages any individuals who are contemplating selling a luxury property in the Bay Area to contact a qualified professional to discuss the value of putting their homes on the market while conditions are still in their favor.

ABOUT:

Thea Miller is a luxury property specialist. With over two decades of experience, Thea Miller guides her clients through the market in San Francisco, California. Thea Miller provides a high degree of customer support while paying close attention to detail and providing insight regarding local property values and activities. She is a member of The National Association of Realtors, The San Francisco Association of Realtors, The California Association of Realtors, Who’s Who in Luxury Real Estate, and Top Agent Network, of which she is a verified member.

Media Contact: Jordan Hope Mark-PR.com, (678) 685-8304, mark@mark-pr.com

News distributed by PR Newswire iReach: https://ireach.prnewswire.com

SOURCE Thea Miller

Article source: http://www.prnewswire.com/news-releases/thea-miller-comments-on-growing-luxury-real-estate-market-190648651.html

Silicon Valley job growth has reached dot-com boom levels, report says – Alameda Times

Sat, 09 Feb 2013 04:29:41 +0000

MOUNTAIN VIEW — Silicon Valley’s job growth has returned to dot-com boom levels and San Francisco has emerged as a major new tech hub. But good times have not returned for all area residents and ethnic groups.

Those are among the findings released Tuesday from the 2013 Silicon Valley Index, a closely watched annual study produced by San Jose-based Joint Venture Silicon Valley and the Mountain View-based Silicon Valley Community Foundation.

“Employment growth in Silicon Valley is impressive, very impressive,” said Russell Hancock, president of Joint Venture Silicon Valley. “Some might even say the job growth is cause for euphoria.”

Last year, the nine-county Bay Area added about 92,000 jobs, according

to the study. Of that total, Silicon Valley — defined as Santa Clara and San Mateo counties — accounted for 46 percent, or 42,000 jobs.

“This is prodigious job creation,” Hancock said. “The growth is crazy and it’s getting crazier.”

Both he and Stephen Levy, director of the Palo Alto-based Center for Continuing Study of the California Economy and an adviser for the report, said Santa Clara County now is above its job totals of the dot-com boom.

Recent Bay Area job growth goes well beyond social media, software, the Internet and other technology industries, showing that the recession is clearly over for the region.

“The tech phenomenon is rippling into other categories,” Hancock said. Construction is one of the

fastest-growing industries in the region, according to the report.

The study also found that San Francisco has emerged as a prominent contributor to what is known as Silicon Valley.

“For a long time we thought of San Francisco as an old-line town — banking, legal, retail, real estate,” Hancock said. “Now it’s tech, software, media, social networks, the Web.”

And that means the definition of Silicon Valley is expanding, the researchers said.

“We have two very dynamic entities, San Jose and San Francisco,” said Doug Henton, CEO of San Mateo-based Collaborative Economics, which did the primary research for the Silicon Valley Index. “They are very complementary to each other.”

During 2012, Santa Clara and San Mateo counties increased their combined job totals by 3.6 percent, while San Francisco grew its job totals by 3.7 percent.

Emmett Carson, CEO of Silicon Valley Community Foundation, said San Jose and San Francisco “are becoming the bookends with many tech companies in between.”

Despite the sturdy job gains, the report found that the upswing in employment and wages has not benefited Bay Area residents equitably.

“Income growth in Silicon Valley is uneven,” it said. “The gap between

high and low income earners is increasing.”

What’s more, certain ethnic groups appear to have been left behind by Silicon Valley’s current surge in hiring and rising wages.

Between 2009 and 2011, per capita income levels increased for whites, Asians and certain other groups. But blacks and Latinos suffered financial erosion. Income levels fell 18 percent among African-Americans and by 5 percent among Latinos, according to the report, but it offered no explanation for the declines.

“Silicon Valley is two valleys,” Hancock said. “There is a valley of haves, and a valley of have-nots.”

Contact George Avalos at 408-373-3556 or 925-977-8477. Follow him at Twitter.com/george_avalos.

The nine-county Bay Area gained about 92,000 jobs during 2012, and 42,000 of those were in Silicon Valley, defined as Santa Clara and San Mateo counties.

Average real per capita income (adjusted for inflation) in Silicon Valley in 2012 was $67,420, up 2.2 percent from 2011.

The fastest-growing employment sector in Silicon Valley was innovation and specialized services, with job growth of 8.7 percent for the year; this sector includes technical services, research and development, legal services and personnel.

Software jobs in Silicon Valley increased by 9.8 percent in 2012, while Internet and innovation services jobs were up 8.7 percent. Among nontech industries, construction was one of the leaders, with an 11 percent gain in jobs.

Source: Silicon Valley Index

Article source: http://www.insidebayarea.com/business/ci_22524360/silicon-valley-job-growth-prodigious-returned-dot-com-boom-levels?source=most_emailed

Bay Area rents, home prices up sharply

Thu, 03 Jan 2013 07:04:47 +0000

If you’re seeking a new pad in the Bay Area, you can expect to pay more than a year ago whether you’re buying or renting, according to a report released Wednesday.

Asking prices for homes for sale around the Bay Area rose substantially in December compared with the same time last year, according to San Francisco real estate website Trulia, ranging from a 16.3 percent spike in tech-fueled Santa Clara County to a 7.6 percent increase in Napa County. The nine-county Bay Area saw an average increase of 13 percent. By comparison, asking prices nationwide rose 5.1 percent in December compared with December 2011, Trulia said.

“Both job growth and tighter inventory gave (sale) prices a lift,” said Jed Kolko, Trulia’s chief economist. “Price increases accelerated throughout 2012, getting bigger as the year went on.”

Analyzing asking prices of homes currently for sale provides a leading indicator of what sales numbers are likely to look like in a few months’ time, Trulia said.

Data on sales throughout much of 2012 have shown the housing market recovering from the extended downturn that started in 2007.

Nationwide, Trulia said, “2012 marked a huge turnaround year for most local housing markets” with prices increasing in 82 of the 100 largest metro areas in December. In December 2011, only 12 markets had price increases.

Las Vegas, Seattle and Phoenix were Trulia’s “top turnaround” markets, followed by Oakland metro (Alameda and Contra Costa counties) and San Jose metro (Santa Clara and San Benito counties).

California cities such as Sacramento and Fresno that were devastated by the housing crisis also saw strong gains in 2012, Trulia said.

“Nine of the top 10 turnaround markets in 2012 were in the West,” Kolko said. “The only one east of the Rockies was Atlanta.”

Asking rents also rose, with Alameda County seeing the biggest spike (13.2 percent) and already pricey San Francisco the least (2.9 percent), Trulia said. The average increase for eight Bay Area counties (Napa did not have enough data) was 7.8 percent. Nationwide, rents grew 5.2 percent.

“We’re seeing rent increases across the region,” Kolko said. “In San Francisco they were smaller because rents are already so much higher there than elsewhere and it has had strong rent increases before this. The slower increase doesn’t make the city affordable.”

While rising home prices illustrate a housing market beginning to recover – and to stimulate economic recovery – they of course are not good news for those house hunting.

“They come with the perennial challenge of affordability in the Bay Area,” Kolko said.

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

Article source: http://www.sfgate.com/realestate/article/Bay-Area-rents-home-prices-up-sharply-4163037.php

Belmont Among the Most Expensive Real Estate Markets in Country

Sun, 02 Dec 2012 15:53:39 +0000

How much does it cost to buy a four-bedroom, two-bath house?

This year, Los Altos/Los Altos Hills, at an average price of $1,706,688, is the most expensive market in the country when it comes to how much house your dollar will buy, according to Coldwell Banker’s annual Home Listing Report.

And Belmont isnt far behind, ranking 15 on the list with an average listing price for a four-bedroom, two-bath home priced at $1,098,777.

In fact, of the nation’s top five most expensive markets, four are on the lower Peninsula and Santa Clara County, and all are in California. Besides Los Altos, they include Saratoga ($1,582,434), Menlo Park ($1,506,909), and Palo Alto ($1,495,364). Newport Beach, in the No. 2 position ($1,658,000), was the only market outside of the Bay Area in the top five.

Coldwell Banker attributes Los Altos’ ranking to the confluence of tech and desirable locations. Google, Apple, Facebook and Stanford University are all located within 15 minutes of Los Altos, Coldwell Banker observed. And, so are the other top-five cities Saratoga, Menlo Park and Palo Alto.

And Los Altos Hills is the town that brought you the $100 million home, purchased by Russian tech investor Yuri Milner in 2011.

“The success of many of our native tech companies has shined a spotlight on Silicon Valley and our real estate market in the San Francisco Bay Area,” said Rick Turley, president of Coldwell Banker Residential Brokerage in the San Francisco Bay Area, in a written statement.

In fact, among the top 20 most expensive markets in the country, ten of them are on the Peninsula or in Santa Clara Valley. They include the additional cities (in order of price) of Los Gatos, San Carlos, Cupertino, San Francisco and Redwood City.

High demand, low inventory, desirability and population projections all figure into the prices, Turley said.

Conversely, the most affordable was in Redford, Michigan, where the average a four-bedroom, two bath house cost $60,490—or 28 times less than the same house in Los Altos.

Coldwell Banker lists both the top 20 most affordable and the most expensive in the chart below.

For a state-by-state ranking , see this Coldwell Banker link.

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Article source: http://belmont-ca.patch.com/articles/belmont-one-the-most-expensive-real-estate-markets-in-country

Cupertino is 12th Most Expensive Real Estate Market in Country

Sat, 01 Dec 2012 21:50:10 +0000

How much does it cost to buy a four-bedroom, two-bath house?

By contrast, for an average of $60,490 a four-bedroom, two-bathroom home can be found in Redford, Mich., which is just outside of Detroit. It’s a isting price difference of more than $1.6 million.

Cupertino is 9th in California and 12th in the nation with an average price of $1,151,145 for a similar sized home. It sits just above San Francisco with an average of $1,132,086.

And Los Altos Hills is the town that brought you the $100 million home, purchased by Russian tech investor Yuri Milner in 2011.

In fact, among the top 20 most expensive markets in the country, 10 of them are on the Peninsula or in Santa Clara Valley. They include the additional cities (in order of price) of Los Gatos, San Carlos, Cupertino, San Francisco and Redwood City.

High demand, low inventory, desirability and population projections all figure into the prices, Turley said.

Conversely, the most affordable was in Redford, Michigan, where the average a four-bedroom, two bath house cost $60,490—or 28 times less than the same house in Los Altos.

Coldwell Banker lists both the top 20 most affordable and the most expensive in the chart below.

For a state-by-state ranking , see this Coldwell Banker link.

Article source: http://cupertino.patch.com/articles/los-altos-the-most-expensive-market-in-country-a35fc8e0

Bay Area housing values jump in second quarter

Tue, 24 Jul 2012 16:49:08 +0000

Bay Area home values increased at a sizzling pace in the second quarter, the online real estate site Zillow reported Tuesday, reinforcing hopes that at least some parts of the region are in the early stages of a housing market recovery.

Home values increased 3.9 percent in San Francisco from the first quarter of this year; 3.79 percent in Santa Clara County; 2.75 percent in Alameda County; 2.18 percent in San Mateo County; and 1.47 percent in Contra Costa County.

For the nine-county Bay Area, which includes areas hit hard by negative equity and foreclosures, the quarterly increase was a surprising 2.5 percent.

While such increases are unsustainable over the long run, according to Stan Humphries, Zillow’s chief economist, the rising values eventually should persuade more people to put their homes up for sale. That will ease the current lack of inventory that has put a damper on sales, he said.

Home sales in the region have been crimped because so many houses are worth less than their mortgages, so owners don’t list them, he said. Also playing into the low inventory is “seller psychology,” Humphries said. “No seller wants to sell at the bottom,” he noted.

With inventory low, parts of the Bay Area are experiencing bidding wars, and some buyers are even enticing sellers with paid vacations or a couple of months of free rent in their home or a condo. Last month Zillow ranked the San Jose and San Francisco metro areas as the top two

“sellers’ markets” in the U.S.

“I have so many frustrated buyers spinning their wheels, having a difficult time getting offers accepted when there’s a multiple-offer situation or quite simply just finding home,” said real estate agent Linette Edwards of Better Homes and Gardens Real Estate in Piedmont.

Edwards, who represents homebuyer and sellers in Contra Costa and Alameda counties, said she has started getting queries from would-be sellers who were too far underwater last year to consider putting their homes on the market.

“Now they’re calling me and realizing they may be able to start listing their houses,” Edwards said. “I anticipate we’ll see more of that in the coming year as homeowners realize the market has picked up.”

She said one homeowner in Danville is listing his home for $700,000. Last year the valuation was too low for him to consider selling, she said.

Zillow uses a proprietary formula for its home value index for detached single-family homes, as well as condos and co-ops. It includes homes that were sold, but also looks at other factors, including various attributes of homes sold, and excludes foreclosure resales.

For the greater Bay Area, the median home value was $453,255, Zillow said. San Francisco’s median home value was $680,000, followed by San Mateo County, $608,800; Santa Clara County, $575,200; Alameda County, $392,500; and Contra Costa County, $297,500.

Paul Kim of San Jose said he stopped looking to buy after a home in San Jose’s Rose Garden district drew 70 offers. Kim said he bid $80,000 over the asking price but the winner bid $140,000 over the price. “I’m going to start aggressively looking again in late September, when hopefully there won’t be as many buyers,” he said.

If rising prices spread to other areas, more homes may go on the market.

“When prices go up, more people will put their homes on the market and inventory will come back to normal levels,” said Richard K. Green, director of the Lusk Center for Real Estate at the University of Southern California. “There are places in the Bay Area where that could happen pretty quickly.”

Negative equity — the plight of homeowners who owe more on their mortgage than their home is worth — will probably remain high for the next two to five years, gradually lessening as home values increase, according to Zillow.

In some areas, negative equity is “not as much as people think,” said Silicon Valley real estate agent Brenda Avilla-Kintz. “We need another 10 to 15 percent growth and a lot of people won’t even need to do short sales,” in which a home is sold for less than is owed on it. “That’s still a couple years out,” she added.

“It’s becoming less negative as house prices are going up around the Bay Area,” said Ken Rosen, chairman at the Fisher Center for Real Estate and Urban Economics at UC Berkeley. “It only affects those people who bought at the peak two or three years. Part of the reason they have negative equity is that they borrowed a lot of money.”

Contact Pete Carey at 408-920-5419.

Article source: http://www.mercurynews.com/business/ci_21142320/bay-area-housing-values-jump-second-quarter-zillow