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Spring Real Estate Market Trends in Bay Area

It is the beginning of the second quarter of the year, and you might still be unsure of whether to pursue your real estate plans. It’s best to be equipped with an insight into what the market looks like now that everyone knows what to do to be extra safe when buying or selling a home. And while everyone slowly gets acquainted with the new normal, the real estate market is currently still recuperating from the effects of last year’s pandemic.  

The sales volume shook experts as winter sales unusually peaked last December 2020, hitting its highest points concerning the sales from the previous years of the same month, and is still rolling on the first quarter of 2021. The availability of the vaccines may still alter the dynamics of the market. Most experts predict that this would go on until the end of the first quarter and extend by the end of summer. 

A Challenge for Buyers 

It’s the beginning of the second quarter of the year, and sales are still constantly climbing with low-interest rates. Interest rates have gone up by 20% since their all-time low last January. The first quarter is typically slow on its sales and sales price, but due to the pandemic, the previous year’s fourth quarter active listings soared. By December, buyers started to rush back into the market sooner than anyone anticipated. The market has since been overcrowded with buyers and often flocks to one desirable property. 

Sellers’ Opportunity 

This year’s sales are, without a doubt, the lowest compared to the previous years, but the Spring sales are still accelerating with buyers still actively and often heated, lookout for new homes while new listings lag. Compared to last year’s active listings, the number dipped to –43.4%. The numbers have been stagnant from the start of the year until the end of March but are expected to rise in the following months to catch up with the demand surge. 

As the supply-demand of houses start to balance, property median price went up to 23.9% of the same time last year with 19.7% existing home sales. Although, in general, the numbers are still comparably low than the previous year, as vaccines start to flock the economy, active listings and sales are expected to increase by the end of Q1. 

Transition to a Normal Market 

Expect the buyer’s market trend to continue until the early months of the second quarter and probably extend until summer, but experts predict the market to go back to normal once things go down by fall and winter. The seasonal patterns for 2020 got thrown entirely out the window, and the market experienced overwhelming data of highs and lows, making the unusual 2020 base year. Understanding last year’s fallout gives us a glimpse of the market for the incoming months and hopefully gives us the more stable market to successfully lay out your plans for your home. 


The Rise of Millennials 


Although the market’s imbalance threw off the predictions of real estate experts, there’s one prediction that made its way to 2021, and that is millennials becoming prominent players in the market. Most of them are already transitioning as “moving up” buyers as their families start to grow and need more space. Older millennials are expected to trade up their first homes, the best time to have substantial equity gains, and younger ones are already looking into their own stater homes. There were plenty of younger millennial buyers who took advantage of the low mortgage rates and have already bought starter homes. 

Final Thoughts 

As the market, and the world, slowly transition to a new normal, you need to stay aware of the trends and where the market is going.  As a top producing agent with 20+ years of experience in the East Bay, I can successfully guide you through these complex times. I have over 25+ transactions closed during the pandemic in the Greater San Francisco Bay area and the counties of Alameda and Contra Costa. My experience as a former appraiser allows me to help my clients understand the market. If you have any questions, I am here to be a resource for you.      

parisa samimi

As a top producing agent with 20+ years of experience in the East Bay, I have guided hundreds of clients through the real estate process in the Greater San Francisco Bay area and the counties of Alameda and Contra Costa. My experience as a former appraiser allows me to help my clients understand the market and help them understand their options. If you have any questions, I am here to be a resource for you.

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shapari 1

Shapari Samimi

meet Shapari Samimi

Shapari Samimi holds a B.A. in Sociology & Anthropology from the University of Redlands, and an M.A in Strategic Public Relations from the University of Southern California Annenberg School for Communication & Journalism.  

Shapari is a Bay Area native, having grown up in El Cerrito and gone to school in Berkeley until college when she relocated to Southern California. She specializes in digital marketing and communications, and has previously worked for the University of Southern California’s School of Architecture, where she wrote editorial and managed social media campaigns showcasing new architectural designs and innovations from students and faculty. Shapari is passionate about creating exciting and inclusive digital marketing and communications campaigns — her skills as a writer, marketer and creative thinker allow her to bring a new and unique perspective to the team. 

When she isn’t working, Shapari is usually learning to cook a new family recipe, swimming and relaxing at the beach or exploring a new city.

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