Why San Francisco Bay Area homes are selling so quickly, for so much money

Consumer Watch

SAN FRANCISCO, Calif. (KRON) – The price of a home in the San Francisco Bay Area continues to rise.

A recent study says that in Contra Costa County alone, home prices were up nearly 20% in the past year.

Realtors say homes in the Bay Area are going fast, and for a high ticket price, due to low interest rates, a lack of inventory and intense demand.

“We’ve hit a new foundation here in terms of pricing and inventory in the Bay Area. We are not building enough houses. We are not building enough apartments, which helps the rental market, which affects the sales market, so we are kind of at a new plateau. I don’t see the prices coming down much in the near future,” said real estate broker Mark Ross.

Based off of a simple Zillow search, there are about three dozen single-family homes for sale in Walnut Creek right now.

All but one of them is at or above $1 million.

“A turnkey home like this we expect will go within 5 to 10 days,” Ross said of the one home below $1 million.

The house in the video sits on a quiet street. It has a kitchen, a living room, three bedrooms and two bathrooms.

“It’s not a mansion, but it’s what a basic family would need. We’ve put in a lawn, we’ve put in some significant upgrades, and it’ll do for most families,” Ross said.

According to a CoreLogic study, homes in Contra Costa County rose 19.4% in the past year from $632,500 to $755,000.

Home prices went up 25.2% in Walnut Creek alone.

So how do you even purchase a home in the Bay Area right now, when houses are selling so fast?

“Do your homework. Be ready. Be very aggressive when it comes to searching, willing to drop what you are doing,” Ross said. “Go out and look at the home. Look at the neighborhood. Contact your professional if you are using one. Be ready to go at a moment’s notice.”

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