‘Red hot’ housing market: Bay Area real estate prices soar

SAN JOSE, Calif. (KRON) – The market is really heating up in the South Bay.

“Areas such as Morgan Hill, Gilroy, and Hollister,” Santa Clara County Association of Realtors president Doug Goss says the local real estate market is red hot.

“We’re seeing multiple offers on most homes that are priced well. We’re seeing multiple offers. We’re seeing properties selling considerably over asking price,” Goss said.

Core Logic reports a January 36% Bay Area wide increase in sales of single-family homes in eight Bay Area counties. 

Driving the surge are low interest rates and a pandemic-related pent-up demand, says Doug Goss.

“We’re seeing a lot of people looking for more space. A lot of people working from home. So they’re looking for where they can have a home office, more space. Kids are being home-schooled now, so they need space for the children to do their education,” Goss said.

The year-over-year median-priced home in the south is up 16% to 1.25 million.

Across the South Bay and beyond, For Sale signs are scarce amid a lack of inventory that is only adding to the competition, says Goss.

“Inventory levels are very low. In Santa Clara County we have about 645 single-family homes currently on the market today,” Goss said.

Goss says the second home and condo market is also heating up and barring a resurgence of the pandemic, he remains bullish about where the market is headed.

“Now with proposition 19 in effect, we do anticipate that will bring more homes to the market. But I still think a very strong demand with low inventory of homes available will continue to drive in Santa Clara County.