Is the Bay Area REALLY in a housing slump?
We’ve all heard about how the real estate market’s slow at the moment and, compared to the crazy, unsustainable first quarter of 2018, it certainly is, yet let’s not take our eyes off what’s really happening–a course correction after a crazy 2018 first quarter, doesn’t mean our real estate prices are going down over time. Consider our market has adjusted slightly, allowing buyers an opportunity to enter the housing market, move up, or purchase investment property. The first quarter of 2019 has seen prices inch up over the last quarter of 2018 and I predict prices will continue to rise slowly (always depending on location, some are still pretty hot) or even be flat in some areas.
REAL ESTATE = LONG TERM INVESTMENT
Real estate ownership is always about the long term, flipping is a risky business and only for those who like to take a risk or have enough capital to see them through. Talking about the long term, let’s take a look at increases in value over the last few years; I looked at year-to-date, May 2016 (end of May) and May 2013 (end of May) and the increases have been significant!
BAY AREA HOUSING TRENDS DATA REPORT
Since May 2013, just 6 short years, in looking at houses, Sunnyvale has come in with a whopping 82.56% increase, followed closely by Mountain View at 80.63% and Menlo Park at 73.58%. For condos and townhomes, the increase was also dramatic with Menlo Park showing a 87.19% increase, followed by Sunnyvale at 84.15%, and Mountain View close by at 80.70%.
Year-to-date, Los Altos comes in with the highest average house price at $3,618,071, and Menlo Park for the highest condo/townhome price at $1,780,859.
With all the activity happening in the Bay area, I only see real estate going up over time. Carla Lindorff at Colliers International (a large and reputable commercial real estate company) regularly puts out a market profile report which I find very interesting showing as it does, what’s happening with office and various types of commercial space; click on this link to see how our area is expanding and growing, all that means people will need housing.
http://www.colliersproperty.com/newsletters/sjc.all.news.Q1-19.pdf
If you, or anyone you know, is looking for real estate info, contact me, I’m here to help!
