Are you looking at purchasing a home in the Bay Area? First of all, you’re not alone. Second, good luck! As a leading mortgage broker in San Jose, we are constantly keeping an eye on the local housing market to watch for any trends that can help us provide our clients with an ideal mortgage.
If you’re looking to make your new home in the Bay Area, it may be more difficult than you had thought.
Per an article that cited a report that studied the relationship between the growth of jobs and housing in the 50 biggest cities in the United States, San Jose, along with San Francisco, were the top two housing markets with the largest lack of supply.
While these two Bay Area cities ranked at the top, a mere 10 of the 50 cities studied were able to meet the housing demand in their respective areas.
In fact, it’s becoming even rarer as the months go by that homebuyers secure a home for less than $500,000 in the area. Single-family homes in the Bay Area that cost $500,000 or less dropped 17% in June 2017 compared to June 2016, and one of the biggest reasons for this is the fact that there just aren’t enough homes to be bought.
To make things even more absurd, overall home sales increased last month thanks in large part to increased employment opportunities with big-money salaries. For homes that cost more than $500,000, sales jumped by 9% last month compared to last year.
The effect that this has on potential homebuyers means that more people are going to have to start looking for more affordable homes on the outskirts of the Bay Area and settle for longer commutes. It also means that we will see more bidding wars on homes in the area as people who decide to stay in the city duke it out.
In a San Jose neighborhood, an incredible 34 bids on a recent home for sale went to the highest bidder who ended up paying more than the asking price, something that is becoming more common as the days go on. In Santa Clara County alone, a 35% decrease in home listings occurred year-over-year.
If you’re looking at buying or selling a home in the Bay Area, this is the time that a mortgage broker San Jose from Thrive Financial can assist you. As mortgage professionals who help clients find the ideal mortgage every day, we can help you navigate your way through one of the busiest housing markets in the country.
For more information on how our team can help, get in touch with us now!