The Ins and Outs of the Bay Area Real Estate Market

There's no doubt that the Bay Area has one of the highest home values in the country. If you're new to the Bay Area, there's a lot you need to know about its real estate market.

Whether you want to sell a house or buy a house in the Bay Area (or are just looking at it from a realtor's perspective), knowing its real estate trends is essential. However, one thing's for sure; the Bay Area is expensive.

This major city has one of the most expensive housing markets in the world, with an average home approximating $2 million. That's why it's important to hire a reliable realtor who has your back and gets you the best deals, whether you're a buyer or seller.

Don't worry if you're new to the area. Read on to familiarize yourself with the ins and outs of the Bay Area real estate market. Plus, we'll also tell you about the best way to increase your home's resale in the Bay Area.

These are some neighborhoods in the Bay Area where the real estate business is booming.

With a 49.7% growth, this county stays at the top of the list due to its average home value. As of 2021, Marin County has a home value worth approximately $1,507,000. Although there are only 700 homes in this community, the demand for a house in this neighborhood is extremely high.

Alameda County in the Redwood Heights neighborhood is another example of a sought-after county in the Bay Area. Its latest home value is nearly $1,373,000, which grows at a rate of 41.7%.

This suburb-like county garnered more clients during the pandemic, which were mostly people looking for a comfortable area away from the city.

Contra Costa County has a rapidly growing home value of $805,000 with a growth rate of 40.7%. You'll find that the area is filled with unusually large, custom-built houses, making it the ideal neighborhood for those that prioritize space above conformity.

 

Santa Clara County has a shocking home value of $1,333,000 with a 36.3 growth rate. It's located in San Jose, and you can count on a beautiful view of the hills near Westfield Oakridge.

Lastly, San Mateo County is known for its famous beaches, metropolitan centers, wine country, national parks, surfing, and more. The County offers a quaint and unique taste of the Californian culture and is part of the San Francisco Bay Area. With a population of 104k+, this County features extremely welcoming landscapes – Small green lawns that are blown neat and edged symmetrically.

Right now is the best time to buy a house in the Bay Area, as its real estate market is completely in your favor. If you're wondering which month is the best for listing prices, it's April, as the prices are lower than average.

May is ideal for housing inventory since there are more houses to choose from during that time. Meanwhile, you should check mortgage rates in December as you'll get a better interest for a 30-year mortgage.

Other than its mild weather and mix of cultures, the Bay Area is home to an endless list of spots to get used to. Admittedly, housing near the excitement can be pretty exciting, but you can get cheaper places not too far away.

If you're new to the Bay Area, it's probably best to make your move with a starter home. If you're not familiar with the term, a starter home is simply an affordable property. This property meets your basic requirements as a homeowner while you familiarize yourself with the Bay Area's real estate market.

Typically, people stay in starter homes long enough to build equity, which is approximately five to seven years. One thing to compromise on is the flexibility with the location since it's hard to find an affordable home in Bay Area's hub spots.

Lastly, you may browse for properties online, but we'd recommend making the actual purchase with a professional and experienced realtor. Ask all the right questions to ensure that your real estate agent is compliant with Bay Area's property laws.

Now that you know the best time to buy a home in the Bay Area, it's time to talk about why you should sell a Bay Area property. Firstly, selling your home directly in the Bay Area will save you a lot of time.

A traditional listing could end up being too much of a gamble, which is why it's ideal to sell directly with a local expert. If you're worried about prices going down, experts have agreed that the Bay Area is still going to have a seller's market all throughout 2022.

Rent is also expected to go up, so if you're planning to rent out your home instead, that's some good news for you. The best part about the Bay Area is that there's never a time of year when people aren't willing to move to the area, which favors you as a seller. 

Undoubtedly, springtime is the ideal time to sell your home in the Bay Area. That's because the first few months are typically slow, and people like to buy homes on warmer days, especially in the Bay Area.

The first step, of course, is working with a reliable realtor in the Bay Area. Your agent will review your needs, timeline, preferences, priorities, budget, and property. Then, they'll provide you with a competitive price that does justice to your property.

 

After developing a marketing plan with your agent, you'll have to sign Bay Area's property disclosures and listing contracts. Staging and repairing your home is a step we wouldn't recommend skipping, as it affects buyer response significantly.

More importantly, you must align your timeline in such a way that it's springtime by the time your listing is up for viewers. Other than that, you must ensure your home is in good condition before potential buyers visit it.

Don't worry about wasting money, as you'll get a return on your investment when you make the right upgrades. For example, enhancing the curb appeal of your home is the best way to maximize ROI in the Bay Area.

There are a few things you must do before you sell property in the Bay Area. Here are a few tasks to keep on your checklist.

Selling a house can be nearly impossible to do on your own, which is why you must choose the right realtor to partner with you on this project. They'll make sure your prices are competitive, your marketing is attractive, and your home is good enough to resell.

Of course, this is a step your realtor will help you with immensely. Picking the right price is important to ensure the buyer isn't being ripped off while you're still getting your investment's worth. Remember: the more you invest in the home improvements, the higher the resale value will be. 

In the Bay Area, not giving complete property closure can result in legal trouble. So, if you have major problems in the house, you have two options. You can either fix the issue or be honest and let it lower the resale value.

Getting rid of minor fixes is a must, and that includes broken windows, noisy doors, runny taps, etc. Seeing a home at its maximum potential is more likely to entice a buyer into making the purchase.

The paperwork may be the hardest part of selling a home, but your realtor will help you decrease the troubles. Some documents you might have to keep on hand include title and ownership, original sales contract, mortgage and financing, and property tax records.

We'd also recommend keeping copies of your homeowner's insurance records and homeowner association (HOA) contract.

Lastly, a few facts and figures should help you understand the Bay Area real estate market better. Here are a few Bay Area market trends to tell you the condition of real estate in the area in 2022.

 

Looking for a home in an unfamiliar real estate market can be pretty daunting, which is why you should always consult an expert in the area. In the Bay Area, there's no better San Francisco Realtor for you than Kara W. Lee.
 
With a life-long residency in the Bay Area, it's safe to say that Kara knows all about the ins and outs of the SF real estate market. Contact Kara W. Lee now to explore this booming market with an expert's help.