Bay Area Home Prices Picking Up Steam
Bay Area home prices are picking up steam in virtually every market. And new data from the real estate website Zillow projects significant appreciation throughout this year – with some areas seeing percentage increases in the double digits.
Zillow senior economist Svenja Gudell says the growth is driven by both high demand and a shortage of housing supply.
“So if you’re a buyer in the market you might be faced with few homes that are available to buy,” she said. “And if you find a home, you often have to engage in a bidding war or multiple offer situation just because there’s so few homes available.”
Gudell says supply is limited because even though prices are going up, many homeowners are still under water – and so aren’t in a position to sell.
She says although some of the hardest hit parts of the Bay Area are still well below their peak, in some high-end markets, prices are rising above their previous peaks.