Bay Area homebuyers weren’t finding any Black Friday specials this holiday season, as prices shot up 17% in November, marking another rapid rise in a record year.
High demand and a low inventory of homes for sale drove the nation’s most expensive home market. Rising prices have left many would-be buyers frustrated, while sellers reaped even higher returns on their properties and could pick and choose from multiple offers. Historically low interest rates hovering around 3% also boosted the market.
“Low-tier priced homes are still in higher demand as entry-level buyers and investors continue to compete for the very limited supply,” CoreLogic economist Selma Hepp said in a statement. She expects 2022 to bring another strong year of price growth — around 7%. Bigger spaces and lots in Contra Costa and Alameda counties are drawing Silicon Valley workers less concerned about their commutes. And the prices are right.
Burlingame agent Jeff LaMont said bids from professional couples in tech and biotech are among the factors fueling rising prices. LaMont recently sold two homes in Millbrae Meadows for more than $500,000 above the listing prices. Upgraded properties are drawing a premium, and multiple offers and quick, as-is sales are standard.