According to the latest data from Zillow, San Francisco’s real estate market is very different from others.

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Unlike the rest of the country, home buyers in the Bay Area are seeing more options on the market compared to last year, but these homes are more expensive than ever and buyers are snapping up within days, according to a new report.

Zillow’s latest monthly real estate report showed that San Francisco housing stocks rose 8.7% in May over April and 25.6% over the same period last year. In another major Gulf city mentioned in the report, San Jose, inventories increased 8% from April and 30.3% from a year ago.

Stocks in San Francisco have risen monthly since February, but nationwide, they have risen for the first time since July 2020, according to the report. And inventories in San Francisco have been increasing since August last year, while inventories across the country were down 31% in May from a year ago.

Matt Creamer, senior public relations manager at Zillow, said the Bay Area is a “clear exception” to the rest of the US.

“The Bay Area is actually the only place where the inventory has grown over last year,” he said.

Inventory for sale in San Francisco in May 2021.

Inventory for sale in San Francisco in May 2021.

Zillow Economic Research

However, “it didn’t have a big impact on the growth of home values ​​or the pace of sales,” he said. “Most of these annual changes have to do with how incredibly low they were a year ago, so there is still a long way to go before stocks catch up with demand.”

While more homes are available, the Bay Area housing market remains hot, with prices at record highs and rising, sales within days, often well above asking price, according to Zillow’s. May Market Watch

A typical San Francisco home is worth $ 1.26 million, a record for a city, according to Zillow. This is 11.6% more than a year ago and 2.8% from April. The cost of a typical home, as calculated by Zillow, averages the middle third of the market minus the top and bottom 5%. The complete methodology can be found here

Zillow Home Value Index in San Francisco in May 2021.

The Zillow San Francisco Home Cost Index in May 2021.

Zillow Economic Research

San Francisco homes remain on the market for about nine days before they qualify for contract, with 61% of homes sold above list price in March, up from 46% in March 2020.

Zillow data shows that a typical home in San Jose is worth $ 1.38 million, up 11.4% from a year ago and 3.3% from April. Homes in that city remained on the market for about 11 days before being bought out, and 60% of homes were sold above list price in March, up from 48% in March 2020.

Kremer said that while home values ​​in the Bay Area were up more than 11% from a year ago, growth in the region still lagged behind the 13.2% nationwide and lagged well behind some popular destinations for locals seeking move to other locations in the state. – such as Sacramento and San Diego, where the growth in home prices was about 20%.

“The Bay Area is the most expensive housing market in the country, and growth slowed and even turned negative in some places before the pandemic because so many people simply could not afford to buy there,” Creamer said. “But the pandemic has brought with it the Great Reshuffle — masses of Americans are moving into homes that better meet their new needs — and most of the current growth is in the suburbs in the East and North Bay, while in the city of San Francisco.”

Kremer said Zillow expects home values ​​to rise at a similar pace in the short term, given continued strong demand, low mortgage rates and an increase in the number of millennials looking to buy homes at record low inventories.

“Our current forecast is for 15% nationwide growth in one year,” he said. “The Bay Area is likely to be slightly below that, but still incredibly high by historical standards.”

Zillow Observed Rent Index in May 2021.

Zillow Observed Rent Index in May 2021.

Zillow Economic Research

Rental prices are also rising in the Bay Area, climbing 1.6% since April in San Francisco with a typical rent of $ 2,867. Typical rents are determined by calculating the price difference for the same rental unit over time and then aggregating those differences across all properties listed for rent on Zillow multiple times. The company also created the weights for the index based on the latest data from the US Census Bureau. Find a technique here

San Francisco rental prices fell to $ 2,786 in January and have been rising monthly since then, according to Zillow. In San Jose, the typical rents were $ 2,874, up 1.6% from April. Prices in this city hit a low in February at $ 2,801 and have risen every month since then.



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