When considering the housing market trend over these past few years in the Bay Area, the answer is UP! Many cities are seeing home prices close to or even above 2006-07 values before the crash. Does that mean that there will be another crash? No, probably not. There were a lot of questionable lending practices in the past and new laws along with Federal regulation will keep such circumstances from happening again. I wrote about this in a previous blog post.
The price trend, though it has increased greatly in the past few years, is set to increase slightly in the span of this year, indicating a healthy, steady growth which may be leveling off. Market conditions in the future may be more balanced in favor between both buyer and seller, but don't count on that to make your real estate decisions. One of the large factors that influence home value is the job market, and the Bay Area's job market is still booming. There are many jobs in tech in the Silicon Valley and with innovation and expansion that will continue to drive the demand for real estate and provide the means to purchase it.
Let's look at a few local market examples of where prices have gone...
In May of 2006 Fremont's median home sales price was $675,000. The most recent lowest point was in December of 2011 when it dipped into $504,000. February 2016? Well, it's now $889,000!
For San Jose in March of 2007 the median price was $694,000. In September of 2011 they went as low as $420,000. Now in February of 2016? They are at $815,000.
Keep in mind that many factors affect home value, both on a macro and micro level. Even neighboring regions within the same city can experience very different levels of growth. For specific information pertaining to your neighborhood and home send me a message, call me, email me or visit my office. I'm always busy but I am never too busy to have a discussion or share some helpful information!
