INVEST IN REAL ESTATE IN THE BAY AREA

In the East Bay, the past year has had an extreme inventory crunch because of the historically low interest rates.  The real estate market is busier than ever.  In April, it had the highest year-over-year sales gain in California, at a growth rate of approximately 35% from last year. The median sales price of this region, which includes all nine counties of Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma, was up by 21.3 percent as compared to the previous year.   

Unfortunately, this low inventory gives a little relief to home buyers as it is causing multiple offers and above asking prices.  Right now, homebuyers are trying to take advantage of low interest rates creating a demand that exceeds the supply.  In fact, as of March, there are only 1.6 months left of inventory in our area.  That is a low supply of homes for our area and across the country, you will see similar situations.  If you are an investor, this is a great time to sell your investment properties as it will capture multiple offers at a market high.  If interest rates weren’t historically low, buyers would be unable to afford the increasing home prices. 

Women working from home in the Bay Area. 

An unexpected outcome in this pandemic that is causing a fundamental shift in real estate is the shift to work remotely.  The increased flexible work-from-home options have provided many people more options to move to the suburbs and outer areas in search of value and lower population density.  As a result, there is a surging ‘suburban boom’ in the US housing market as remote work becomes more common. It suggests continued price growth into the next year as demand remains high and interest rates remain low. 

What is on the horizon as you consider investing in real estate.  As the pandemic ends, interest rates will certainly be increasing.  This will undoubtedly reduce the demand for home prices and increase in house inventory back to more normal levels.  This could present an opportunity to make an investment purchase.  Overall, as an investor, you need to consider how your investing strategies play against these significant trends in the current real estate environment. 

FINAL THOUGHTS 

Overall, real estate investment can seem daunting but it is not.  You need people with experience to partner with you alongside you.  Parisa As a top producing agent with 20+ years of experience in the East Bay, I have helped hundreds of clients build their wealth through real estate in the Greater San Francisco Bay area and the counties of Alameda and Contra Costa. As a former appraiser, my experience allows me to help my buyers know that they are paying the right price for their investment.  If you have any questions, I am here to be a resource for you. I love talking about real estate investing.