The Irony of the Bay Area Real Estate Market: Prices Up But Sales Down

It's interesing to see how the Bay Area real estate market is acting right now. According to Dataquick, the median Bay Area home price rose over 6% in April, even though sales are down significantly. It seems a bit odd, but our market hasn't been very "typical" at all in recent years.

Normally we would expect prices to be falling slightly along with sales activity, but the opposite seems to be happening. I think it may suggest that there are less buyers overall right now, but there's still enough buyers out there who want to live in the Bay Area, and who are willing to compete with other buyers for the home of their dreams. We are still seeing many properties that fetch multiple offers and end up selling for more than the asking price. These properties tend to be in excellent locations, and they tend to attract multiple offers even if they need significant work.

Only time will tell what direction prices will go over the next year, but the current indications are that the market is stabilizing. Once the level of inventory goes down a little, sales could begin to pick up in pace with price increaces.

Here's an article about recent Bay Area real estate stats.

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