Bay Area home prices up 6% from last year as wealthy buyers dominate housing market

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Fueled by soaring tech stocks, affluent home buyers are taking over the Bay Area housing market

A drone view of the Sorrento at Dublin Ranch housing development in Dublin, Calif., on Thursday, Feb. 23, 2023. Dublin is now California’s fastest growing city, according to U.S. Census data. If you feel like only the Bay Area’s wealthiest can afford to buy a home right now, you’re not alone.

High-value home sales outpaced the broader market, especially in the South Bay, according to a recent report by real estate brokerage Compass. In San Mateo County, home sales rose 11.5% year over year, while homes selling for more than $5 million jumped 29%. Likewise, in Santa Clara County, sales overall increased 18.5% from 2023, while sales of homes for more than $5 million climbed a stunning 63%.

That was the case for George Martines. He started looking for two-bedroom condos around San Jose in January, but soon realized there were few options within his budget of about $500,000. Interest rates, while improving, haven’t been in buyers’ favor this summer. During the first week of May, interest rates on a 30-year mortgage hit a 6-month high of 7.22%, according toAfter living in 700 sf for 5 years, this family wanted a bigger space. What could they find for under $1 million in the Bay?

“Sellers are concerned,” Yost said. “If they sell, where will they go? What will they replace the property with? So instead, they’re staying put.”

 

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