Is Real Estate The Bay Area buyers or sellers market?
It has really been a rollercoaster year in the Bay Area Real Estate Market in the nine Bay Area counties. We have seen huge fluctuations in market prices, property values and sales with much confusion emerging especially in the bedroom quarter. According to the latest figures released by Data Quick Services, the market is apparently flat with the average growth of only 0.8% during this period last year. The irony is that in certain areas, properties are getting multiple offers and in some cases, go over the listing. There are reports several deals in San Francisco and Marin County especially. Moreover, there have been reports of properties going for a hundred thousand dollars and at market value in the counties of Napa and Solano. Properties in certain areas in the East Bay have been selling very well as Lafayette, Orinda, and the Montclair District, Oakland, Piedmont and Berkeley Hills. While in other places like Antioch, Brentwood, Richmond, San Pablo Bay Point and sellers would have a hard time giving away properties. It's a very strange phenomenon.
It was not long ago that ads anywhere in the Bay Area were getting multiple offers, and in many cases, buyers were involved in bidding wars. Part of the reason for this is that many investors in the stock market was playing in the real estate game time. Interest rates reached all time lows and many programs were invented to help buyers enter the market with no money down and negative amortization loans. Had even credit products available, which would go to 125 percent of property value. We saw before our eyes tripling of property values, and more in some areas, over a period of five years. It was a frenzy to mortgage brokers and real estate agents who needed its own coffers to keep all the money they were doing. The only problem was the default rate of these so called "creative" loans was conservative thought better and greed was prevalent and abundant. With most of these loans set to adjust over the next three years, someone could make a strong hunch that it will remain a buyer's market awhile. However, there are many areas in the Bay Area, which does not seem to be affected by all this.
The Bay Area is incredibly rich in diversity, not only when it comes to cultures and values, but also real estate. We live and work in an extremely original and the biotechnology industry, universities renowned giant hi-tech, global shipping and a very large economy. It can easily be forgotten that there is an incredible amount of wealth and fortune in the area Bay. Moreover, the housing market during the past six years has been largely fueled by first time buyers with creative financing. We are now beginning see why we are seeing as a large fluctuation in real estate. Areas that are most desirable and important is affected much less than areas that have been driven by first time buyers. There are other factors to take into consideration such as location, climate, public schools and amenities. The more desire is not an area for which there is more demand for property there. This creates a very stable environment for homeowners in areas richer and less demand for the less favored areas. One thing remains crucial negotiations, and the rest of the money goes.
We still have not reached an answer to our main question. It is a buyers or a seller's market? I think a simple answer would be that, as a function of location and strategy. Eventually, the market goes out of the fund and investors will come in and cherry pick the big purchase. The demand for housing in the Bay Area will continue to exist and the population continues to grow. There will always be a great demand for housing because there will never be enough to keep up with demand creation market value appreciation over time. With very little land left to build, and building permits increasingly difficult to obtain approval, this will only help to increase the Bay Area property. If your investment strategy is long term, it's a pretty safe bet that the property in a good location will pay dividends.
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About the Author
Matt Larsen is a local real estate professional in the Bay Area. Please check us out online.
http://www.teamenterprise.com
http://www.mattlarsenhomes.com
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