SAN FRANCISCO, Calif. (KRON) – Zillow economist Nancy Wu says home values in the Bay Area are rising, with more than 2/3 of listed properties selling over the asking price within the span of a week.
She also notes inventory is increasing, with more properties being listed.
“Inventory is up 6% from April as of May, and up 25.6% from last year. But keeping in mind that a year ago, 2020 May, that was when the pandemic was taking full force and inventory was very low as people were taking their homes off the market in the Bay Area.”
Wu says the fact that more properties are hitting the market now could be a good thing for buyers who have been frustrated by constantly being outbid by other people who are willing to go far above the asking price and pay with cash.
“61% of homes sold above their list price in March, and that’s compared to 46% that sold above list price in march 2020. So, a lot of homes in the Bay Area are selling above ask.”
Oakland realtor and president of the bridge association of realtors, Jeffrey Neidleman says bidding wars and the reopening of the economy is leading to a recent decrease in buyers.
“We’re seeing some buyer fatigue for sure.”
A trend he expects may continue for a few more weeks before interest in buying picks up toward the end of summer – into the Fall.
Realtor Jeffrey Neidleman, “open houses are not as busy. we’re seeing, perhaps, less offers coming in on properties.”
Still, Zillow says Bay Area home values are up 3% in the past month.