Real Estate prices in the Bay Area
The rule of thumb for many potential Bay Area home owners is,
"try not to think about it too much." When looking at the
average home price in the Bay Area, $616,000, and then looking
at what $616,000 affords you (a 4 bedroom home in Stockton or a
studio apartment in the Mission District of San Francisco) it is
best to make sure you have the down payment and can make
mortgage payments, and buy. Even more importantly, don't talk
about the price of buying a home, the inflated real estate
market, or the size of your potential new abode with anyone
outside the area--unless they live in Boston or New York City.
"Low" and "High" are the two words you hear most when talking
about real estate prices in the San Francisco Bay Area. Low
inventory and low interest rates are driving up home prices,
asking prices are high, and bids are even higher. Even after the
dotcom bust of 2000-2001 when everything in the area seemed to
be deflating, home prices continued to rise and it hasn't
stopped. In addition, in most Bay Area counties, a half million
dollar home usually needs some work. It is rare to find a home
for $500,000 or under that is ready to move into or livable.
With high home prices only getting higher, and low inventory the
investments you make in your home, whether with upgrades or more
drastic remodeling projects, will only help the resale value.
Often Bay Area residents living in San Francisco and Silicon
Valley turn to the East Bay for more affordable home options.
However, prices are rapidly increasing in Contra Costa and
Alameda counties, too. Alameda County's median home price rose
20.6 percent from September of 2004 to September of 2005, and
now homes are selling for an average of $579,000. According to
the East Bay Business Times: "The Bay Area real estate market
seems to have settled into a steady state, with few indicators
pointing to any upcoming change." said Marshall Prentice,
DataQuick president. Supply and demand seem stable. We are
keeping an eye on rising mortgage interest rates which could
slow things down somewhat before the end of the year." Home
prices in the Bay Area are high, and thinking about them can get
you low, but when you look at the natural beauty of the area,
the proximity to the ocean, the mountains, wine country, and
numerous cultural outlets it seems are fair price to pay. The
Bay Area is one of the fastest growing communities in the
country, and has relatively low crime rates, respectable
schools, and location, location, location; you can understand
the booming real estate market. With home prices in the Bay Area
getting higher and higher and the inventory getting smaller and
smaller, buying a home in the Bay Area is proving a solid
investment regardless of cost.