Zillow analysis showed that the number of home sales in seven core counties in the Bay Area and Silicone Valley is on the rise. Despite the COVID-19 crisis, home buyers and home sellers were rushing to join the market in April. Spring is otherwise the busiest period for home sales, however, many countries in the US have reported decreasing sales in the housing market with the virus outbreak. Still, buyers in the wider Bay Area are eager to get their new homes despite restrictions, the rising level of unemployment, and the rising prices in the housing market.
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Bay Area Recording Increasing Home Sales
Zillow reports jumping prices in the wider Bay Area, noting a 7% rise in the home prices in Alameda County and a 6% rise in Santa Clara County. Single-family homes were being sold at an average price of around 896,000$ in the Bay Area. Many sellers retreated due to the COVID-19 outbreak and restrictions that included social distancing. With home touring on hold, home sales were set on a decline. However, with spring coming to an end to greet summer, economists expect to see home sales rising in other areas in the US as well.
Low Interest Rates and Low Housing Inventory Bringing Home Prices Up
The COVID-19 outbreak has brought mortgage rates to historic lows, which is coming off as more than tempting for many home buyers. At the same time, home sellers retreated during the outbreak crisis, which is why home inventory is running low as a result. The two factors – declining housing inventory and low rates – are causing the prices of homes to rise in the Bay Area and the US.
Bay Area Buyers and Sellers Still Cautious
Although the Bay Area is recording a favorable activity in terms of home sales in April, the area is still noting lower sales when compared to the last year. Single-family homes in some of the Bay Area counties dropped from -21% in Santa Clara, -27% in Alameda, -10% in Contra Costa, and 22% in San Mateo.
