STRONG ECONOMY SHOULD CONTINUE TO PUSH UP BAY AREA HOME PRICES
Bay Area home prices are already out of reach for many residents, and that appears unlikely to change barring an unforeseen economic catastrophe.
That’s according to National Association of Realtors’ Chief Economist Lawrence Yun, who spoke last week at the 27th Annual Convention and Expo of the Santa Clara County Association of Realtors. As The Mercury News reports, Yun told attendees that the Bay Area will probably not see a housing meltdown due to intense demand driven by plentiful jobs and exceptionally slim inventory conditions.
The San Francisco and San Jose metropolitan areas have created a combined 550,000 new jobs since 2012. The latest jobs report from the California Employment Development Department says that six local counties had the lowest unemployment rates in the state as of September: San Mateo (2.7 percent), Marin (2.9 percent), San Francisco (2.9 percent), Napa (3.2 percent), Sonoma (3.2 percent), and Santa Clara (3.3 percent).
Yun predicts that the robust California and Bay Area economies will likely continue to fuel demand and push home prices higher throughout the region. Over the past 20 years, home prices have quadrupled in the combined San Francisco, San Jose, and Los Angeles metropolitan areas.