The latest housing price figures show a significant increase compared to this time last year. With mortgage rates remaining above 7% and housing inventory still low, Bay Area prices are expected to remain high.
In fact, most counties experienced significant price increases over the past year, with some areas seeing hikes of up to 20%. Despite a slight uptick in available inventory, the spring season is driving buyers into the market, where they are encountering these high home prices.
Economists attribute the price increases to scarcity, but they also note that many buyers are overbidding simply because they have the financial means to do so.
“The price increases are driven by more than just interest rates and scarcity. It seems like there’s still a substantial amount of money in the economy,” said Matt Dinapoli, CEO of Dinapoli Capital Partners.
Currently, there is a 180% difference between the typical Bay Area mortgage payment and the typical Bay Area rent payment.
